Analyzing Gamehaus (NASDAQ:GMHS) and Sohu.com (NASDAQ:SOHU)

Gamehaus (NASDAQ:GMHS) and Sohu.com (NASDAQ:SOHU) are both small-cap communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Gamehaus and Sohu.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gamehaus	1	0	0	0	1.00
Sohu.com	0	1	2	0	2.67

Sohu.com has a consensus price target of $19.00, suggesting a potential upside of 45.59%. Given Sohu.com’s stronger consensus rating and higher probable upside, analysts clearly believe Sohu.com is more favorable than Gamehaus.

Risk and Volatility

Gamehaus has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Sohu.com has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gamehaus	4.39%	12.53%	8.99%
Sohu.com	38.15%	21.63%	16.13%

Institutional & Insider Ownership

63.7% of Gamehaus shares are owned by institutional investors. Comparatively, 33.0% of Sohu.com shares are owned by institutional investors. 27.7% of Gamehaus shares are owned by company insiders. Comparatively, 21.1% of Sohu.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Gamehaus and Sohu.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gamehaus	$104.65 million	0.37	$4.28 million	$0.09	7.97
Sohu.com	$584.33 million	0.58	$394.10 million	$8.57	1.52

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

Summary

Sohu.com beats Gamehaus on 10 of the 14 factors compared between the two stocks.

About Gamehaus

Gamehaus Holdings Inc. is a mobile game developer and publisher. Gamehaus Holdings Inc. is headquartered in Beijing, China.

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.