Leju Holdings Limited (NYSE: LEJU) and Tremor Video (NYSE:TLRA) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares Leju Holdings Limited and Tremor Video’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Leju Holdings Limited $449.20 million 0.67 -$91.60 million ($0.91) -1.78
Tremor Video N/A N/A N/A ($0.27) -17.52

Tremor Video has higher revenue, but lower earnings than Leju Holdings Limited. Tremor Video is trading at a lower price-to-earnings ratio than Leju Holdings Limited, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Leju Holdings Limited and Tremor Video’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leju Holdings Limited -27.57% -31.88% -22.18%
Tremor Video -7.11% -16.72% -8.96%

Insider & Institutional Ownership

4.6% of Leju Holdings Limited shares are held by institutional investors. Comparatively, 39.7% of Tremor Video shares are held by institutional investors. 8.2% of Tremor Video shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Leju Holdings Limited has a beta of 2.94, suggesting that its share price is 194% more volatile than the S&P 500. Comparatively, Tremor Video has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Leju Holdings Limited and Tremor Video, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leju Holdings Limited 1 0 0 0 1.00
Tremor Video 0 1 2 0 2.67

Leju Holdings Limited currently has a consensus target price of $2.10, indicating a potential upside of 29.63%. Tremor Video has a consensus target price of $4.13, indicating a potential downside of 12.79%. Given Leju Holdings Limited’s higher probable upside, equities research analysts plainly believe Leju Holdings Limited is more favorable than Tremor Video.

Summary

Tremor Video beats Leju Holdings Limited on 8 of the 11 factors compared between the two stocks.

Leju Holdings Limited Company Profile

Leju Holdings Limited is an online to offline (O2O), real estate services provider in China. The Company offers real estate e-commerce, online advertising and online listing services through its online platform, which consists of local Websites covering over 260 cities and various mobile applications. The Company integrates its online platform with offline services to facilitate residential property transactions. In addition to its own Websites, the Company operates various real estate and home furnishing Websites of SINA Corporation (SINA). Its O2O services for new residential properties include selling discount coupons and facilitating online property viewing, physical property visits, marketing events and pre-sale customer support. It sells advertising primarily on the SINA new residential properties and home furnishing Websites, which are operated by the Company.

Tremor Video Company Profile

Trulia, Inc. is a real estate search engine company. The Company’s marketplace, delivered through the web and mobile applications, gives consumers tools to research homes and neighborhoods and enables real estate professionals to market their listings and attract new clients. The Company also offers a suite of free and subscription products that provide real estate professionals with access to transaction-ready consumers and help them to grow and manage their online presence. For the year ended December 31, 2013, the Company had 38.8 million monthly unique visitors. As at December 31, 2013, the Company had more than 437,000 active real estate professionals in its Trulia marketplace and 157,000 active real estate professionals using its Market Leader software and services. Approximately 59,700 of these real estate professionals were paying subscribers (assuming 20% overlap between Trulia subscribers and Marker Leader’s premium subscribers).

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