Head to Head Contrast: Baidu (NASDAQ:BIDU) and Uxin (NASDAQ:UXIN)

Baidu (NASDAQ:BIDU) and Uxin (NASDAQ:UXIN) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Volatility and Risk

Baidu has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Uxin has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Profitability

This table compares Baidu and Uxin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baidu	4.21%	5.63%	3.50%
Uxin	-8.55%	N/A	-9.71%

Valuation & Earnings

This table compares Baidu and Uxin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baidu	$18.46 billion	2.32	$799.00 million	$1.59	79.24
Uxin	$463.27 million	1.17	-$39.69 million	($0.19)	-15.21

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Baidu and Uxin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baidu	2	4	16	1	2.70
Uxin	1	0	1	0	2.00

Baidu presently has a consensus price target of $158.05, suggesting a potential upside of 25.45%. Uxin has a consensus price target of $4.50, suggesting a potential upside of 55.71%. Given Uxin’s higher probable upside, analysts plainly believe Uxin is more favorable than Baidu.

Institutional and Insider Ownership

22.4% of Uxin shares are owned by institutional investors. 16.7% of Baidu shares are owned by company insiders. Comparatively, 62.9% of Uxin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Baidu beats Uxin on 11 of the 15 factors compared between the two stocks.

About Baidu

Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.

About Uxin

Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.