Critical Analysis: Sina Corporation (SINA) & LINE Corporation (LN)
Sina Corporation (NASDAQ: SINA) and LINE Corporation (NYSE:LN) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Risk & Volatility
Sina Corporation has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, LINE Corporation has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.
Insider and Institutional Ownership
67.0% of Sina Corporation shares are owned by institutional investors. Comparatively, 3.7% of LINE Corporation shares are owned by institutional investors. 7.4% of Sina Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Sina Corporation and LINE Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Sina Corporation and LINE Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sina Corporation||$1.23 billion||6.27||$265.15 million||$3.00||36.13|
|LINE Corporation||$1.39 billion||5.57||$164.64 million||N/A||N/A|
Sina Corporation has higher revenue, but lower earnings than LINE Corporation.
This is a breakdown of current ratings and price targets for Sina Corporation and LINE Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sina Corporation presently has a consensus price target of $104.08, suggesting a potential downside of 3.97%. Given Sina Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sina Corporation is more favorable than LINE Corporation.
Sina Corporation beats LINE Corporation on 9 of the 12 factors compared between the two stocks.
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.
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.
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