LINE Corporation (NYSE: LN) and Sina Corporation (NASDAQ:SINA) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Insider & Institutional Ownership

3.4% of LINE Corporation shares are held by institutional investors. Comparatively, 66.0% of Sina Corporation shares are held by institutional investors. 7.4% of Sina Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares LINE Corporation and Sina Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LINE Corporation 8.74% 8.82% 5.82%
Sina Corporation 18.64% 6.58% 4.55%

Earnings and Valuation

This table compares LINE Corporation and Sina Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LINE Corporation $1.38 billion 5.63 $163.58 million N/A N/A
Sina Corporation $1.23 billion 5.74 $265.15 million $3.00 33.08

Sina Corporation has higher revenue, but lower earnings than LINE Corporation.

Analyst Ratings

This is a summary of current ratings and target prices for LINE Corporation and Sina Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LINE Corporation 1 6 2 0 2.11
Sina Corporation 0 1 8 0 2.89

Sina Corporation has a consensus price target of $104.08, indicating a potential upside of 4.89%. Given Sina Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Sina Corporation is more favorable than LINE Corporation.

Summary

Sina Corporation beats LINE Corporation on 8 of the 11 factors compared between the two stocks.

About LINE Corporation

LINE Corporation is a Japan-based company mainly engaged in the operation of LINE business portal business. Its LINE business portal segment includes communication and content service and advertising service. Communication and content service provides communication, contents and other services, such as LINE Pay, LINE FRIENDS and LINE Mobile. Advertising service provides LINE advertising and portal advertising services.

About Sina Corporation

Sina Corporation is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company’s segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.

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