GigaMedia (NASDAQ:GIGM – Get Free Report) and iQIYI (NASDAQ:IQ – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Earnings & Valuation
This table compares GigaMedia and iQIYI”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GigaMedia | $3.47 million | 4.39 | -$1.55 million | ($0.18) | -7.67 |
| iQIYI | $3.80 billion | 0.26 | -$29.50 million | ($0.12) | -8.58 |
Analyst Recommendations
This is a summary of current ratings and recommmendations for GigaMedia and iQIYI, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GigaMedia | 1 | 0 | 0 | 0 | 1.00 |
| iQIYI | 1 | 4 | 1 | 0 | 2.00 |
iQIYI has a consensus target price of $1.73, suggesting a potential upside of 67.96%. Given iQIYI’s stronger consensus rating and higher possible upside, analysts clearly believe iQIYI is more favorable than GigaMedia.
Volatility and Risk
GigaMedia has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.
Insider & Institutional Ownership
13.5% of GigaMedia shares are held by institutional investors. Comparatively, 52.7% of iQIYI shares are held by institutional investors. 1.0% of GigaMedia shares are held by insiders. Comparatively, 57.8% of iQIYI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares GigaMedia and iQIYI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GigaMedia | -43.36% | -5.36% | -5.02% |
| iQIYI | -3.24% | -6.29% | -1.78% |
Summary
iQIYI beats GigaMedia on 9 of the 14 factors compared between the two stocks.
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.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
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