Critical Survey: SEEK (OTCMKTS:SKLTY) and Autohome (NYSE:ATHM)

Autohome (NYSE:ATHM) and SEEK (OTCMKTS:SKLTY) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Profitability

This table compares Autohome and SEEK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autohome	25.81%	8.19%	6.35%
SEEK	N/A	N/A	N/A

Valuation & Earnings

This table compares Autohome and SEEK”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autohome	$7.30 billion	0.46	$286.40 million	$2.14	13.05
SEEK	N/A	N/A	N/A	$1.14	28.64

Autohome has higher revenue and earnings than SEEK. Autohome is trading at a lower price-to-earnings ratio than SEEK, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Autohome and SEEK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autohome	0	3	0	1	2.50
SEEK	0	0	0	0	N/A

Autohome currently has a consensus target price of $28.00, indicating a potential upside of 0.25%. Given Autohome’s higher probable upside, equities research analysts clearly believe Autohome is more favorable than SEEK.

Insider and Institutional Ownership

63.1% of Autohome shares are held by institutional investors. 5.7% of Autohome shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Autohome beats SEEK on 9 of the 10 factors compared between the two stocks.

About Autohome

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.

About SEEK

SEEK Limited, together with its subsidiaries, engages in the provision of online employment marketplace services in Australia, South East Asia, Brazil, New Zealand, Mexico, the United Kingdom, Europe, and internationally. It operates through ANZ, SEEK Asia, Brazil Online, OCC, Platform support, Portfolio investments, and SEEK Growth Fund segments. The company offers Jora, an online employment marketplace; JobAdder, a talent acquisition suite that simplifies the hiring process for recruiter and corporate talent acquisition teams; and Certsy, a platform to securely verify and share work credentials, and to complete compliance checks. It also owns and manages seek, JobsDB, JobStreet, catho, and occmundial platforms. In addition, the company holds a portfolio of investments in the human capital management industry. SEEK Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.