Financial Analysis: Bumble (NASDAQ:BMBL) & Baidu (NASDAQ:BIDU)

Bumble (NASDAQ:BMBL) and Baidu (NASDAQ:BIDU) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Bumble has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Baidu has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bumble and Baidu, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	1	13	5	0	2.21
Baidu	0	2	14	0	2.88

Bumble currently has a consensus price target of $9.62, suggesting a potential upside of 48.24%. Baidu has a consensus price target of $144.07, suggesting a potential upside of 60.54%. Given Baidu’s stronger consensus rating and higher possible upside, analysts plainly believe Baidu is more favorable than Bumble.

Institutional & Insider Ownership

94.8% of Bumble shares are owned by institutional investors. 7.8% of Bumble shares are owned by company insiders. Comparatively, 16.7% of Baidu shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Bumble and Baidu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bumble	2.04%	0.92%	0.60%
Baidu	14.73%	9.95%	6.11%

Earnings and Valuation

This table compares Bumble and Baidu’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$1.09 billion	0.75	-$4.21 million	$0.17	38.18
Baidu	$134.97 billion	0.23	$2.86 billion	$7.47	12.01

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

Summary

Baidu beats Bumble on 10 of the 14 factors compared between the two stocks.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.

About Baidu

Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.