Comparing Qutoutiao (NASDAQ:QTT) and Baidu (NASDAQ:BIDU)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Qutoutiao N/A N/A N/A
Baidu 19.38% 8.58% 5.02%

Valuation & Earnings

This table compares Qutoutiao and Baidu’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qutoutiao $43.70 million 29.69 -$282.54 million ($2.10) -2.18
Baidu $14.88 billion 2.70 $4.01 billion $7.80 14.73

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

Insider & Institutional Ownership

0.4% of Qutoutiao shares are held by institutional investors. Comparatively, 59.5% of Baidu shares are held by institutional investors. 16.7% of Baidu shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Qutoutiao and Baidu, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qutoutiao 0 2 2 0 2.50
Baidu 0 10 10 0 2.50

Qutoutiao presently has a consensus price target of $12.25, suggesting a potential upside of 167.47%. Baidu has a consensus price target of $178.17, suggesting a potential upside of 55.06%. Given Qutoutiao’s higher probable upside, research analysts clearly believe Qutoutiao is more favorable than Baidu.

Summary

Baidu beats Qutoutiao on 10 of the 12 factors compared between the two stocks.

Qutoutiao Company Profile

Qutoutiao Inc. operates mobile platforms for the distribution, consumption, and sharing of light entertainment content in the People's Republic of China. The company operates Qutoutiao, a mobile application that aggregates articles and short videos from professional media and freelancers and presents customized feeds to users; and Quduopai, a mobile application that allows users to create, upload, and view videos. It also provides Midu Novels, a mobile literature application that offers users free literature supported by advertising. The company was formerly known as Qtech Ltd. and changed its name to Qutoutiao Inc. in July 2018. Qutoutiao Inc. was founded in 2016 and is headquartered in Shanghai, China.

Baidu Company Profile

Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through its other properties and Union partners; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Haokan, a short video app; and Quanmin, a flash video app for users to create and share short videos. It also provides Baidu Post Bar, a social media platform; Baidu Knows, a question-and-answer community where questions are asked, answered, and organized by users; Baidu Encyclopedia; Baidu Maps that offers locations, and intelligent routing and navigation services; Baidu Input Method Editor (IME), a Chinese-language mobile keyboard; Baidu WenKu; Baijiahao; and DuerOS, a voice assistant platform. In addition, this segment offers online marketing services, which include pay for performance (P4P), 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; Non-P4P services provide display-based marketing services and other online marketing services based on performance criteria other than cost per click; Apollo, an open source autonomous driving platform; and Baidu Cloud primarily provides AI solutions, cloud infrastructure, and other services to enterprises and individuals. The iQIYI segment provides online entertainment service, including original and licensed content; membership services; and online advertising services. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.

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