Critical Contrast: GigaMedia (NASDAQ:GIGM) & Professional Diversity Network (NASDAQ:IPDN)

GigaMedia (NASDAQ:GIGM) and Professional Diversity Network (NASDAQ:IPDN) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Earnings & Valuation

This table compares GigaMedia and Professional Diversity Network’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaMedia	$4.29 million	3.26	-$3.40 million	($0.37)	-3.42
Professional Diversity Network	$7.70 million	0.70	-$4.31 million	($0.38)	-1.22

GigaMedia has higher earnings, but lower revenue than Professional Diversity Network. GigaMedia is trading at a lower price-to-earnings ratio than Professional Diversity Network, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

GigaMedia has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 13.08, suggesting that its share price is 1,208% more volatile than the S&P 500.

Institutional and Insider Ownership

13.5% of GigaMedia shares are owned by institutional investors. Comparatively, 27.8% of Professional Diversity Network shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by insiders. Comparatively, 3.5% of Professional Diversity Network shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GigaMedia and Professional Diversity Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	0	0	0	0	N/A
Professional Diversity Network	0	0	0	0	N/A

Profitability

This table compares GigaMedia and Professional Diversity Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GigaMedia	-109.81%	-8.94%	-8.37%
Professional Diversity Network	-54.12%	-186.84%	-65.87%

Summary

Professional Diversity Network beats GigaMedia on 6 of the 11 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan and Hong Kong. It operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through branded platform. The company offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. It also provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. The company was founded in 1998 and is headquartered in Taipei, Taiwan.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites; and contracted software development services. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.