Analyzing GigaMedia (NASDAQ:GIGM) & GungHo Online Entertainment (OTCMKTS:GUNGF)

GungHo Online Entertainment (OTCMKTS:GUNGF) and GigaMedia (NASDAQ:GIGM) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

2.6% of GungHo Online Entertainment shares are held by institutional investors. Comparatively, 13.5% of GigaMedia shares are held by institutional investors. 1.0% of GigaMedia shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares GungHo Online Entertainment and GigaMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GungHo Online Entertainment	N/A	N/A	N/A
GigaMedia	-121.14%	-9.33%	-8.76%

Analyst Recommendations

This is a summary of current recommendations and price targets for GungHo Online Entertainment and GigaMedia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GungHo Online Entertainment	0	0	0	0	N/A
GigaMedia	0	0	0	0	N/A

Earnings & Valuation

This table compares GungHo Online Entertainment and GigaMedia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GungHo Online Entertainment	N/A	N/A	N/A	$53.82	0.36
GigaMedia	$3.39 million	4.58	-$3.40 million	($0.37)	-3.80

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

Summary

GungHo Online Entertainment beats GigaMedia on 5 of the 8 factors compared between the two stocks.

About GungHo Online Entertainment

GungHo Online Entertainment, Inc. plans, develops, operates, and distributes smartphone applications, console games, and online computer games. The company was formerly known as ONSale Co., Ltd. and changed its name to GungHo Online Entertainment, Inc. in August 2002. GungHo Online Entertainment, Inc. was incorporated in 1998 and is based in Tokyo, Japan.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also 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 other casual games. In addition, the company 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. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.