Bilibili (NASDAQ:BILI – Get Free Report) and WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Bilibili has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500.
Profitability
This table compares Bilibili and WEBTOON Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bilibili | 4.88% | 11.42% | 4.29% |
| WEBTOON Entertainment | -25.09% | 2.10% | 1.60% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bilibili | $31.42 billion | 0.17 | $170.67 million | $0.49 | 26.27 |
| WEBTOON Entertainment | $1.38 billion | 0.94 | -$345.93 million | ($2.63) | -3.62 |
Bilibili has higher revenue and earnings than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than Bilibili, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Bilibili and WEBTOON Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bilibili | 0 | 1 | 8 | 0 | 2.89 |
| WEBTOON Entertainment | 1 | 5 | 1 | 0 | 2.00 |
Bilibili currently has a consensus price target of $29.39, indicating a potential upside of 128.35%. WEBTOON Entertainment has a consensus price target of $10.88, indicating a potential upside of 14.11%. Given Bilibili’s stronger consensus rating and higher probable upside, research analysts clearly believe Bilibili is more favorable than WEBTOON Entertainment.
Insider and Institutional Ownership
16.1% of Bilibili shares are owned by institutional investors. 22.2% of Bilibili shares are owned by company insiders. Comparatively, 5.6% of WEBTOON Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Bilibili beats WEBTOON Entertainment on 11 of the 13 factors compared between the two stocks.
About Bilibili
Bilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic. The company also provides advertising services; and IP derivatives and other services. In addition, it engages in the business and technology development activities; e-commerce business; and video, comics, and game distribution activities. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.
About WEBTOON Entertainment
WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.
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