Angie’s List (NASDAQ: ANGI) and Bitauto Holdings Limited (NYSE:BITA) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

82.3% of Angie’s List shares are held by institutional investors. Comparatively, 19.7% of Bitauto Holdings Limited shares are held by institutional investors. 18.2% of Angie’s List 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 Ratings

This is a breakdown of recent recommendations for Angie’s List and Bitauto Holdings Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Angie’s List 1 4 1 0 2.00
Bitauto Holdings Limited 0 0 1 0 3.00

Angie’s List currently has a consensus target price of $9.81, indicating a potential downside of 23.10%. Bitauto Holdings Limited has a consensus target price of $33.00, indicating a potential downside of 26.57%. Given Angie’s List’s higher possible upside, equities research analysts plainly believe Angie’s List is more favorable than Bitauto Holdings Limited.

Volatility and Risk

Angie’s List has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Bitauto Holdings Limited has a beta of 3.08, indicating that its share price is 208% more volatile than the S&P 500.

Valuation and Earnings

This table compares Angie’s List and Bitauto Holdings Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Angie’s List $302.30 million 2.57 $3.60 million ($0.23) -55.48
Bitauto Holdings Limited $1.07 billion 2.93 $105.77 million ($1.21) -37.14

Bitauto Holdings Limited has higher revenue and earnings than Angie’s List. Angie’s List is trading at a lower price-to-earnings ratio than Bitauto Holdings Limited, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Angie’s List and Bitauto Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Angie’s List -4.62% -392.52% -8.71%
Bitauto Holdings Limited -4.76% 3.85% 1.60%

Summary

Bitauto Holdings Limited beats Angie’s List on 7 of the 12 factors compared between the two stocks.

About Angie’s List

Angie’s List, Inc. operates a national local services consumer review service and marketplace. As of December 31, 2016, the Company helped facilitate transactions between over five million members and its collection of service providers in over 700 categories of service nationwide. Its tools, services and content across multiple platforms enables consumers to research, shop for and purchase local services for needs, as well as rate and review the providers of these services across the United States. Its ratings and reviews assist its members in identifying and hiring the provider for their local service needs. Its services include member services and service provider services. It compiles a breadth of relevant, member-generated ratings and reviews that provide insights, which could otherwise be difficult for consumers to obtain on their own. Its primary source of service provider revenue is term-based sales of advertising to service providers.

About Bitauto Holdings Limited

Bitauto Holdings Limited is a provider of Internet content and marketing services for China’s automotive industry. The Company’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

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