Critical Comparison: Weibo Corporation (WB) versus Live Ventures (LIVE)

Weibo Corporation (NASDAQ: WB) and Live Ventures (NASDAQ:LIVE) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

19.7% of Weibo Corporation shares are owned by institutional investors. Comparatively, 5.6% of Live Ventures shares are owned by institutional investors. 64.9% of Live Ventures shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Weibo Corporation and Live Ventures’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Weibo Corporation $655.80 million 35.47 $108.02 million $1.18 89.12
Live Ventures $78.95 million 0.37 $17.82 million $2.17 6.61

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

Profitability

This table compares Weibo Corporation and Live Ventures’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weibo Corporation 26.85% 30.00% 20.97%
Live Ventures 6.46% 29.02% 8.04%

Risk & Volatility

Weibo Corporation has a beta of 2.5, suggesting that its share price is 150% more volatile than the S&P 500. Comparatively, Live Ventures has a beta of -3.75, suggesting that its share price is 475% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Weibo Corporation and Live Ventures, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weibo Corporation 0 0 7 0 3.00
Live Ventures 0 0 0 0 N/A

Weibo Corporation currently has a consensus target price of $91.00, indicating a potential downside of 13.47%. Given Weibo Corporation’s higher probable upside, analysts plainly believe Weibo Corporation is more favorable than Live Ventures.

Summary

Weibo Corporation beats Live Ventures on 11 of the 13 factors compared between the two stocks.

Weibo Corporation Company Profile

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

Live Ventures Company Profile

Live Ventures Incorporated is a holding company for diversified businesses. The Company’s segments include Manufacturing Segment, Marketplace Platform Segment and Services Segment. The Manufacturing Segment consists of Marquis Industries, Inc. The Marketplace Platform segment consists of livedeal.com and Modern Everyday, Inc. The Services Segment consists of the local exchange carrier billings business and velocity local. It operates LiveDeal.com, a real-time deal engine that connects restaurants across the United States and consumers through an online mobile platform. It is focused on the residential, commercial and hospitality end-markets. As of September 30, 2016, the Company operated its business through 13 divisions, each specializing in a distinct area of the business, such as Best Buy flooring Source, Marquis Carpet, Best Buy Hard surface, A-O Industries, Quantum Textiles and B and H Tufters.

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