Chinanet Online (NASDAQ:CNET) and Facebook (NASDAQ:FB) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Risk and Volatility
Get Chinanet Online alerts:Chinanet Online has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Facebook has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Chinanet Online and Facebook, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chinanet Online | 0 | 0 | 0 | 0 | N/A |
| 3 | 7 | 37 | 0 | 2.72 |
Facebook has a consensus price target of $190.67, indicating a potential upside of 13.95%. Given Facebook’s higher probable upside, analysts plainly believe Facebook is more favorable than Chinanet Online.
Valuation & Earnings
This table compares Chinanet Online and Facebook’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chinanet Online | $46.63 million | 0.57 | -$10.12 million | N/A | N/A |
| $55.84 billion | 8.71 | $22.11 billion | $7.57 | 22.10 |
Facebook has higher revenue and earnings than Chinanet Online.
Profitability
This table compares Chinanet Online and Facebook’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chinanet Online | -30.37% | -71.31% | -41.31% |
| 39.60% | 27.51% | 23.97% |
Insider & Institutional Ownership
0.9% of Chinanet Online shares are owned by institutional investors. Comparatively, 58.1% of Facebook shares are owned by institutional investors. 35.8% of Chinanet Online shares are owned by insiders. Comparatively, 16.3% of Facebook shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Facebook beats Chinanet Online on 9 of the 11 factors compared between the two stocks.
Chinanet Online Company Profile
ChinaNet Online Holdings, Inc., through its subsidiaries, operates an integrated service platform that provides advertising and marketing services in the People's Republic of China. Its platform comprises CloundX, an omni-channel advertising and marketing system; and a data analysis management system. The company offers Internet advertising, precision marketing, and related data and value added services through its Internet advertising portals, including 28.com; and liansuo.com. It also produces and distributes television shows comprising advertisements. The company serves customers in the food and beverage, women accessories, footwear, apparel and garments, home goods and construction materials, environmental protection equipment, cosmetic and health care, education network, and other industries. ChinaNet Online Holdings, Inc. was founded in 2003 and is based in Beijing, the People's Republic of China.
Facebook Company Profile
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its products include Facebook Website and mobile application that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing visual stories through photos, videos, and direct messages; Messenger, a messaging application to communicate with other people, groups, and businesses across various platforms and devices; and WhatsApp, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allows people to enter an immersive and an interactive environment to train, learn, play games, consume content, and connect with others. As of December 31, 2017, it had approximately 1.40 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
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