Contrasting Sportradar Group (NASDAQ:SRAD) & Weibo (NASDAQ:WB)

Weibo (NASDAQ:WB) and Sportradar Group (NASDAQ:SRAD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Weibo and Sportradar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weibo	16.74%	10.92%	5.07%
Sportradar Group	2.90%	3.35%	1.53%

Volatility & Risk

Weibo has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Sportradar Group has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Insider & Institutional Ownership

68.8% of Weibo shares are owned by institutional investors. 41.3% of Weibo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Weibo and Sportradar Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weibo	$1.76 billion	1.07	$342.60 million	$1.19	6.78
Sportradar Group	$949.77 million	13.04	$37.51 million	$0.09	123.85

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Weibo and Sportradar Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weibo	2	3	2	0	2.00
Sportradar Group	0	4	5	0	2.56

Weibo presently has a consensus price target of $11.65, indicating a potential upside of 44.36%. Sportradar Group has a consensus price target of $13.81, indicating a potential upside of 23.93%. Given Weibo’s higher possible upside, equities analysts clearly believe Weibo is more favorable than Sportradar Group.

Summary

Weibo beats Sportradar Group on 9 of the 14 factors compared between the two stocks.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover content in the People's Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user's trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product solutions to MCNs, unions, and e-commerce partners; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation operates as a subsidiary of Sina Corporation.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.