Youku Tudou (NYSE: YOKU) and Connecture (OTCMKTS:CNXR) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Youku Tudou and Connecture’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Youku Tudou -23.48% -12.96% -9.88%
Connecture -19.38% N/A -17.70%

Valuation & Earnings

This table compares Youku Tudou and Connecture’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Youku Tudou N/A N/A N/A ($1.28) -21.52
Connecture $81.89 million 0.10 -$26.53 million ($0.67) -0.50

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

Volatility and Risk

Youku Tudou has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500. Comparatively, Connecture has a beta of 3.58, suggesting that its stock price is 258% more volatile than the S&P 500.

Institutional and Insider Ownership

38.4% of Connecture shares are owned by institutional investors. 68.6% of Connecture shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Youku Tudou and Connecture, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Youku Tudou 0 0 0 0 N/A
Connecture 0 0 0 0 N/A

Summary

Connecture beats Youku Tudou on 8 of the 9 factors compared between the two stocks.

Youku Tudou Company Profile

Youku Tudou Inc. is an Internet television company in the People’s Republic of China. The Company’s Youku and Tudou platforms enable users to search, view and share video content across multiple devices. Its monthly visitors from home and office personal computer (PC) users numbered approximately 256 million and 169 million for Youku platform and Tudou platform, respectively. Through its Youku and Tudou platforms, it has built an online video content library. The videos accessible on its two platforms are produced content, such as television serial dramas, movies, variety shows, current events reports and music videos. The remaining content consists of user-generated content and in-house productions. The Company licenses professionally produced video content at fixed rates for a specified term. The terms of its licenses vary depending on the type of content and producer, though the terms for television serial dramas and movies range from six months to ten years.

Connecture Company Profile

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

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