Weibo (NASDAQ:WB) versus Pazoo (OTCMKTS:PZOO) Critical Review

Weibo (NASDAQ:WB) and Pazoo (OTCMKTS:PZOO) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weibo	26.58%	11.79%	6.46%
Pazoo	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Weibo and Pazoo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weibo	0	1	1	0	2.50
Pazoo	0	0	0	0	0.00

Weibo currently has a consensus target price of $14.00, indicating a potential upside of 37.39%. Given Weibo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Weibo is more favorable than Pazoo.

Valuation & Earnings

This table compares Weibo and Pazoo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weibo	$1.75 billion	1.42	$300.80 million	$1.76	5.79
Pazoo	N/A	N/A	N/A	N/A	N/A

Weibo has higher revenue and earnings than Pazoo.

Institutional and Insider Ownership

68.8% of Weibo shares are held by institutional investors. 41.3% of Weibo shares are held by insiders. Comparatively, 6.2% of Pazoo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Weibo has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Pazoo has a beta of -0.51, suggesting that its stock price is 151% less volatile than the S&P 500.

Summary

Weibo beats Pazoo on 10 of the 10 factors compared between the two stocks.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute 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 services for better displaying and promotion of its account and content; 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, the People’s Republic of China.

About Pazoo

Pazoo, Inc. operates as a health and wellness company. It offers laboratory testing services for marijuana. Pazoo, Inc.was formerly known as IUCSS, Inc. and changed its name to Pazoo, Inc. in May 2011. The company was founded in 2010 and is headquartered in East Hanover, New Jersey.