KE (NYSE:BEKE – Get Free Report) and GigaMedia (NASDAQ:GIGM – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Insider and Institutional Ownership
39.3% of KE shares are held by institutional investors. Comparatively, 13.5% of GigaMedia shares are held by institutional investors. 6.8% of KE shares are held by insiders. Comparatively, 1.0% of GigaMedia shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares KE and GigaMedia”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KE | $13.52 billion | 1.25 | $428.13 million | $0.42 | 35.98 |
| GigaMedia | $3.47 million | 4.62 | -$1.55 million | ($0.15) | -9.67 |
KE has higher revenue and earnings than GigaMedia. GigaMedia is trading at a lower price-to-earnings ratio than KE, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares KE and GigaMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KE | 3.77% | 5.47% | 3.10% |
| GigaMedia | -50.86% | -4.52% | -4.24% |
Analyst Recommendations
This is a summary of current recommendations for KE and GigaMedia, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KE | 0 | 1 | 6 | 0 | 2.86 |
| GigaMedia | 1 | 0 | 0 | 0 | 1.00 |
KE presently has a consensus price target of $23.07, indicating a potential upside of 52.63%. Given KE’s stronger consensus rating and higher possible upside, research analysts clearly believe KE is more favorable than GigaMedia.
Risk & Volatility
KE has a beta of -0.33, meaning that its share price is 133% less volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
Summary
KE beats GigaMedia on 12 of the 14 factors compared between the two stocks.
About KE
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
About GigaMedia
GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.
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