GrubHub (NYSE: GRUB) and Qudian (NYSE:QD) are both mid-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Earnings & Valuation

This table compares GrubHub and Qudian’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GrubHub $493.33 million 13.25 $49.55 million $0.68 110.91
Qudian $212.83 million 21.35 $85.06 million $0.92 14.97

Qudian has lower revenue, but higher earnings than GrubHub. Qudian is trading at a lower price-to-earnings ratio than GrubHub, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GrubHub and Qudian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GrubHub 9.60% 7.45% 6.07%
Qudian N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations for GrubHub and Qudian, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GrubHub 1 9 13 0 2.52
Qudian 0 1 5 0 2.83

GrubHub presently has a consensus target price of $63.67, indicating a potential downside of 15.58%. Qudian has a consensus target price of $19.67, indicating a potential upside of 42.82%. Given Qudian’s stronger consensus rating and higher probable upside, analysts plainly believe Qudian is more favorable than GrubHub.

Institutional and Insider Ownership

0.1% of Qudian shares are held by institutional investors. 2.4% of GrubHub shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

GrubHub beats Qudian on 7 of the 13 factors compared between the two stocks.

About GrubHub

Grubhub Inc. provides an online and mobile platform for restaurant pick-up and delivery orders. Its products include Grubhub and Seamless Mobile Applications and Mobile Website, Grubhub and Seamless Websites, Corporate Program, Delivery, Allmenus and MenuPages, Grubhub for Restaurants, and Restaurant Websites. As of December 31, 2016, the Company connected more than 50,000 local restaurants with diners in more than 1,100 cities across the United States. In certain markets, the Company also provides delivery services to restaurants on its platform that do not have their own delivery operations. The Company provides diners on the platform with a personalized platform that helps them search for local restaurants and then place an order from an Internet-connected device. It also provides diners with information about their orders and status. The Company also provides delivery services to restaurants on its platform that do not have their own delivery operations.

About Qudian

Qudian Inc. provides cash credit products, which provide funds in digital form, and merchandise credit products. The Company operates through an online platform and all the transaction are facilitated through mobile devices. Borrowers can apply for credit on their mobile phones and receive approval within a few seconds. Approved borrowers are then able to draw down on their cash credit with cash disbursed immediately into their Alipay accounts in digital form. It also offers merchandise credit products to finance borrowers’ direct purchase of merchandise offered on its marketplace on installment basis. Its marketplace connects consumers with merchandise suppliers. It offers 14 categories of merchandise from over 1,000 brands covering primarily consumer electronics, home appliances, watches and accessories, sports and outdoor merchandise and luggage.

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