Sohu.com (NASDAQ:SOHU) vs. CyberAgent (OTCMKTS:CYAGF) Critical Comparison

Sohu.com (NASDAQ:SOHU) and CyberAgent (OTCMKTS:CYAGF) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Volatility and Risk

Sohu.com has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sohu.com and CyberAgent, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sohu.com	0	1	2	0	2.67
CyberAgent	0	0	0	0	0.00

Sohu.com presently has a consensus price target of $20.00, suggesting a potential upside of 27.39%. Given Sohu.com’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sohu.com is more favorable than CyberAgent.

Insider and Institutional Ownership

33.0% of Sohu.com shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sohu.com and CyberAgent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sohu.com	$584.33 million	0.70	$394.10 million	$14.08	1.12
CyberAgent	$5.86 billion	0.69	$212.17 million	$0.50	15.92

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

Profitability

This table compares Sohu.com and CyberAgent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sohu.com	67.44%	20.67%	13.84%
CyberAgent	4.31%	16.76%	8.48%

Summary

Sohu.com beats CyberAgent on 12 of the 14 factors compared between the two stocks.

About Sohu.com

Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.