Critical Review: Weibo (NASDAQ:WB) & Tremor International (NASDAQ:TRMR)

Tremor International (NASDAQ:TRMRGet Free Report) and Weibo (NASDAQ:WBGet Free Report) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

7.9% of Tremor International shares are owned by institutional investors. Comparatively, 68.8% of Weibo shares are owned by institutional investors. 8.2% of Tremor International shares are owned by company insiders. Comparatively, 41.3% of Weibo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Tremor International -5.72% 3.11% 1.89%
Weibo 19.47% 10.77% 5.11%

Analyst Ratings

This is a breakdown of current ratings and price targets for Tremor International and Weibo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tremor International 0 1 4 0 2.80
Weibo 2 3 2 0 2.00

Tremor International currently has a consensus target price of $7.30, suggesting a potential upside of 27.40%. Weibo has a consensus target price of $11.65, suggesting a potential upside of 20.60%. Given Tremor International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tremor International is more favorable than Weibo.

Valuation & Earnings

This table compares Tremor International and Weibo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tremor International $343.77 million 1.06 $22.74 million ($0.14) -35.86
Weibo $1.76 billion 1.29 $342.60 million $1.42 6.80

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

Volatility and Risk

Tremor International has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500. Comparatively, Weibo has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Summary

Weibo beats Tremor International on 10 of the 14 factors compared between the two stocks.

About Tremor International

(Get Free Report)

Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.

About Weibo

(Get Free Report)

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.

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