Reviewing DouYu International (NASDAQ:DOYU) and Autohome (NYSE:ATHM)

DouYu International (NASDAQ:DOYU) and Autohome (NYSE:ATHM) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DouYu International	-2.63%	-0.97%	-0.80%
Autohome	25.81%	8.19%	6.35%

Volatility & Risk

DouYu International has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$4.73 billion	0.07	$5.00 million	($0.38)	-28.39
Autohome	$7.30 billion	0.51	$286.40 million	$2.11	14.04

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

Institutional & Insider Ownership

17.9% of DouYu International shares are held by institutional investors. Comparatively, 63.1% of Autohome shares are held by institutional investors. 17.3% of DouYu International shares are held by insiders. Comparatively, 5.7% of Autohome shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for DouYu International and Autohome, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	2	1	0	0	1.33
Autohome	0	3	0	1	2.50

DouYu International currently has a consensus target price of $10.25, indicating a potential downside of 5.00%. Autohome has a consensus target price of $28.00, indicating a potential downside of 5.47%. Given DouYu International’s higher possible upside, equities analysts plainly believe DouYu International is more favorable than Autohome.

Summary

Autohome beats DouYu International on 11 of the 14 factors compared between the two stocks.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.

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.