GigaMedia (NASDAQ:GIGM) and Twitter (NYSE:TWTR) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for GigaMedia and Twitter, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GigaMedia 0 0 0 0 N/A
Twitter 3 16 13 0 2.31

Twitter has a consensus target price of $39.55, suggesting a potential upside of 4.51%. Given Twitter’s higher possible upside, analysts plainly believe Twitter is more favorable than GigaMedia.

Profitability

This table compares GigaMedia and Twitter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GigaMedia -44.71% -4.59% -4.28%
Twitter 42.20% 8.37% 5.44%

Insider and Institutional Ownership

4.7% of GigaMedia shares are owned by institutional investors. Comparatively, 67.1% of Twitter shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by company insiders. Comparatively, 2.7% of Twitter shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

GigaMedia has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Twitter has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Earnings & Valuation

This table compares GigaMedia and Twitter’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GigaMedia $7.10 million 3.91 -$3.19 million N/A N/A
Twitter $3.04 billion 9.56 $1.21 billion $0.55 68.80

Twitter has higher revenue and earnings than GigaMedia.

Summary

Twitter beats GigaMedia on 11 of the 11 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company offers mobile and browser-based casual games through FunTown-branded platform. Its portfolio of PC-based casual games include MahJong, a traditional Chinese tile game; sports games, Web-based RPG, and mobile games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. The company also provides Tales Runner, a multi-player online obstacle running game in which players competes by running, jumping, dashing and using items. In addition, it owns and operates GigaCloud, a provider of cloud computing solutions and related services focused on the cloud services market for SMEs in Taiwan. GigaMedia Limited was founded in 1997 and is headquartered in Taipei, Taiwan.

About Twitter

Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company operates in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.

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