Analyzing MeetMe (MEET) and Sina Corporation (NASDAQ:SINA)

MeetMe (NASDAQ: MEET) and Sina Corporation (NASDAQ:SINA) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

MeetMe has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Sina Corporation has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Insider & Institutional Ownership

50.2% of MeetMe shares are owned by institutional investors. Comparatively, 66.0% of Sina Corporation shares are owned by institutional investors. 4.7% of MeetMe shares are owned by insiders. Comparatively, 7.4% of Sina Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for MeetMe and Sina Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MeetMe 0 0 3 0 3.00
Sina Corporation 0 1 8 0 2.89

MeetMe currently has a consensus target price of $8.25, suggesting a potential upside of 129.17%. Sina Corporation has a consensus target price of $104.08, suggesting a potential upside of 5.78%. Given MeetMe’s stronger consensus rating and higher probable upside, equities analysts clearly believe MeetMe is more favorable than Sina Corporation.

Profitability

This table compares MeetMe and Sina Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MeetMe 15.95% 11.47% 10.67%
Sina Corporation 18.64% 6.58% 4.55%

Valuation and Earnings

This table compares MeetMe and Sina Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MeetMe $97.80 million 2.64 $26.40 million $0.24 15.00
Sina Corporation $1.23 billion 5.70 $265.15 million $3.00 32.80

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

Summary

Sina Corporation beats MeetMe on 10 of the 14 factors compared between the two stocks.

MeetMe Company Profile

The Meet Group, Inc., formerly MeetMe, Inc., offers a portfolio of mobile applications. The Company operates location-based social networks for meeting new people on mobile platforms, including on iPhone, Android, iPad and other tablets, and on the Web that facilitate interactions among users, and helps users to connect and chat with each other. The Company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The Company holds interest in Skout, Inc. (Skout), which serves as a global mobile network for meeting new people. The Company’s social networking products include Chat, Profile and Friends. Its social discovery products facilitate interactions among members. The Company’s social discovery products include Meet, Discuss and Buzz, and Interested. The Company’s products also include Social Theater.

Sina Corporation Company Profile

Sina Corporation is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company’s segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.

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