Blucora (NASDAQ: BCOR) and Weibo Corporation (NASDAQ:WB) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Volatility & Risk

Blucora has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500. Comparatively, Weibo Corporation has a beta of 2.57, meaning that its share price is 157% more volatile than the S&P 500.

Institutional & Insider Ownership

90.2% of Blucora shares are held by institutional investors. Comparatively, 19.6% of Weibo Corporation shares are held by institutional investors. 14.1% of Blucora shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Blucora and Weibo Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blucora -8.03% 11.92% 5.43%
Weibo Corporation 23.22% 24.45% 17.30%

Analyst Recommendations

This is a summary of recent ratings and target prices for Blucora and Weibo Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blucora 0 1 3 0 2.75
Weibo Corporation 0 0 8 0 3.00

Blucora presently has a consensus target price of $25.33, suggesting a potential downside of 2.19%. Weibo Corporation has a consensus target price of $86.71, suggesting a potential downside of 16.79%. Given Blucora’s higher probable upside, analysts plainly believe Blucora is more favorable than Weibo Corporation.

Earnings & Valuation

This table compares Blucora and Weibo Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blucora $491.58 million 2.37 $92.46 million ($1.02) -25.39
Weibo Corporation N/A N/A N/A $0.87 119.78

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

Summary

Weibo Corporation beats Blucora on 8 of the 12 factors compared between the two stocks.

About Blucora

Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.

About Weibo Corporation

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

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