Connecture (NASDAQ: CNXR) and Weibo Corporation (NASDAQ:WB) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk and Volatility

Connecture has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, Weibo Corporation has a beta of 2.61, meaning that its share price is 161% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Connecture $82.18 million 0.19 -$8.20 million ($1.02) -0.69
Weibo Corporation $842.20 million 25.78 $260.90 million $0.87 120.37

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

Analyst Ratings

This is a breakdown of current ratings for Connecture and Weibo Corporation, as provided by MarketBeat.

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

Weibo Corporation has a consensus price target of $80.17, suggesting a potential downside of 23.45%. Given Weibo Corporation’s higher probable upside, analysts clearly believe Weibo Corporation is more favorable than Connecture.

Profitability

This table compares Connecture and Weibo Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -21.91% N/A -20.45%
Weibo Corporation 23.22% 24.45% 17.30%

Insider & Institutional Ownership

38.8% of Connecture shares are owned by institutional investors. Comparatively, 19.6% of Weibo Corporation shares are owned by institutional investors. 58.1% of Connecture shares are owned 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.

Summary

Weibo Corporation beats Connecture on 10 of the 12 factors compared between the two stocks.

Connecture Company Profile

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

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).

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