Bitauto (NYSE:BITA) and Inovalon (NASDAQ:INOV) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Volatility and Risk
Bitauto has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Inovalon has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
Institutional and Insider Ownership
33.2% of Bitauto shares are held by institutional investors. Comparatively, 31.9% of Inovalon shares are held by institutional investors. 17.0% of Bitauto shares are held by insiders. Comparatively, 50.9% of Inovalon shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Bitauto and Inovalon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Bitauto and Inovalon, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bitauto presently has a consensus price target of $26.25, suggesting a potential upside of 40.15%. Inovalon has a consensus price target of $15.33, suggesting a potential upside of 19.79%. Given Bitauto’s higher possible upside, equities research analysts clearly believe Bitauto is more favorable than Inovalon.
Valuation and Earnings
This table compares Bitauto and Inovalon’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bitauto||$1.30 billion||1.05||-$260.34 million||($3.42)||-5.48|
|Inovalon||$527.68 million||3.70||$34.81 million||$0.18||71.11|
Inovalon has lower revenue, but higher earnings than Bitauto. Bitauto is trading at a lower price-to-earnings ratio than Inovalon, indicating that it is currently the more affordable of the two stocks.
Inovalon beats Bitauto on 9 of the 13 factors compared between the two stocks.
Bitauto Holdings Limited, through its subsidiaries, provides Internet content and marketing services, and transaction services for the automobile industry in the People’s Republic of China. It operates in three segments: Advertising and Subscription Business, Transaction Services Business, and Digital Marketing Solutions Business. The Advertising and Subscription Business segment offers advertising services, including automobile pricing and promotional information, specifications, reviews, and consumer feedback to automakers through its bitauto.com Website and related mobile applications. It also provides transaction-focused online advertisement and promotional services for automakers, automobile dealers, auto finance partners, and insurance companies; and Web-based and mobile-based integrated digital marketing solutions to automobile dealers. The Transaction Services Business segment operates an online automobile retail transaction platform, which provides transaction platform and self-operated financing services. The Digital Marketing Solutions Business segment offers one-stop digital marketing solutions, including Website creation and maintenance, online public relation, online marketing campaign, advertising agency, big data application, and digital image creation services for automakers. The company also distributes its dealer customers’ automobile pricing and promotional information through its Internet service provider partners. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People’s Republic of China.
Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models in the healthcare industry. The company’s platform enables the assessment and enhancement of clinical and quality outcomes and financial performance. It serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. The company provides technology that supports approximately 500 healthcare organizations. Its platforms are informed by data pertaining to approximately 932,000 physicians; 455,000 clinical facilities; and approximately 240 million individuals and 37 billion medical events. Inovalon Holdings, Inc. has a collaboration agreement with Anthem, Inc. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.
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