Analyzing HubSpot (NYSE:HUBS) & Xunlei (NASDAQ:XNET)

Xunlei (NASDAQ:XNET) and HubSpot (NYSE:HUBS) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Analyst Recommendations

This is a summary of current recommendations for Xunlei and HubSpot, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	0	1	0	0	2.00
HubSpot	2	19	13	0	2.32

HubSpot has a consensus price target of $264.65, indicating a potential upside of 14.00%. Given HubSpot’s stronger consensus rating and higher possible upside, analysts clearly believe HubSpot is more favorable than Xunlei.

Valuation & Earnings

This table compares Xunlei and HubSpot”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xunlei	$462.41 million	0.66	$1.05 billion	($1.24)	-3.88
HubSpot	$3.45 billion	3.36	$45.91 million	$2.83	82.03

Xunlei has higher earnings, but lower revenue than HubSpot. Xunlei is trading at a lower price-to-earnings ratio than HubSpot, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Xunlei has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, HubSpot has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Institutional and Insider Ownership

5.1% of Xunlei shares are held by institutional investors. Comparatively, 90.4% of HubSpot shares are held by institutional investors. 21.7% of Xunlei shares are held by insiders. Comparatively, 3.7% of HubSpot shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Xunlei and HubSpot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xunlei	-15.25%	0.62%	0.52%
HubSpot	4.26%	8.66%	4.47%

Summary

HubSpot beats Xunlei on 12 of the 14 factors compared between the two stocks.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.