Comparing ZipLink (OTCMKTS:ZIPL) & iQIYI (NASDAQ:IQ)

iQIYI (NASDAQ:IQ) and ZipLink (OTCMKTS:ZIPL) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Profitability

This table compares iQIYI and ZipLink’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iQIYI	-2.61%	-4.72%	-1.36%
ZipLink	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for iQIYI and ZipLink, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iQIYI	2	1	2	0	2.00
ZipLink	0	0	0	0	0.00

iQIYI presently has a consensus price target of $2.55, suggesting a potential upside of 142.54%. Given iQIYI’s stronger consensus rating and higher possible upside, analysts clearly believe iQIYI is more favorable than ZipLink.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iQIYI	$3.80 billion	0.27	-$29.50 million	($0.10)	-10.50
ZipLink	N/A	N/A	N/A	N/A	N/A

ZipLink has lower revenue, but higher earnings than iQIYI.

Insider & Institutional Ownership

52.7% of iQIYI shares are owned by institutional investors. 57.8% of iQIYI shares are owned by insiders. Comparatively, 57.5% of ZipLink shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

iQIYI beats ZipLink on 6 of the 9 factors compared between the two stocks.

About iQIYI

iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.

About ZipLink

This record represents the public shell of ZipLink, Inc. In November 2000, ZipLink, Inc. suspended its operations and announced the lay off of substantially all of its employees except those necessary to wind down operations. Ziplink, Inc. operated as a wholesale connectivity provider in North America for the Business-to-Business marketplace, including Internet service providers, competitive local exchange carriers, Web appliance vendors, and PC manufacturers and distributors, as of September 30, 2000. ZipLink also offered a range of Internet connectivity services for Internet appliances, including Internet access and subscriber authentication. The company was founded in 1995 and is based in Lowell, Massachusetts.