Reviewing Bilibili (NASDAQ:BILI) & WEBTOON Entertainment (NASDAQ:WBTN)

Bilibili (NASDAQ:BILI) and WEBTOON Entertainment (NASDAQ:WBTN) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

16.1% of Bilibili shares are owned by institutional investors. 22.2% of Bilibili shares are owned by insiders. Comparatively, 5.6% of WEBTOON Entertainment shares are owned 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.

Analyst Ratings

This is a summary of current ratings and target prices for Bilibili and WEBTOON Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bilibili	0	1	8	0	2.89
WEBTOON Entertainment	1	5	1	0	2.00

Bilibili currently has a consensus price target of $29.39, suggesting a potential upside of 128.35%. WEBTOON Entertainment has a consensus price target of $10.88, suggesting a potential upside of 14.11%. Given Bilibili’s stronger consensus rating and higher possible upside, equities analysts plainly believe Bilibili is more favorable than WEBTOON Entertainment.

Profitability

This table compares Bilibili and WEBTOON Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bilibili	4.88%	11.42%	4.29%
WEBTOON Entertainment	-25.09%	2.10%	1.60%

Earnings & Valuation

This table compares Bilibili and WEBTOON Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bilibili	$31.42 billion	0.17	$170.67 million	$0.49	26.27
WEBTOON Entertainment	$1.38 billion	0.94	-$345.93 million	($2.63)	-3.62

Bilibili has higher revenue and earnings than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than Bilibili, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Bilibili has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.57, meaning that its share price is 157% more volatile than the S&P 500.

Summary

Bilibili beats WEBTOON Entertainment on 11 of the 13 factors compared between the two stocks.

About Bilibili

Bilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic. The company also provides advertising services; and IP derivatives and other services. In addition, it engages in the business and technology development activities; e-commerce business; and video, comics, and game distribution activities. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.

About WEBTOON Entertainment

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.