In the realm of small-cap business services companies, Agora and Xunlei stand out as key players. Both companies operate in different regions, with Agora based in Santa Clara, California, and Xunlei headquartered in Shenzhen, People’s Republic of China. In this article, we will compare the two companies across various factors to determine which stock holds the upper hand.
Volatility & Risk:
Agora exhibits a beta of -0.01, indicating that its share price is remarkably less volatile than the S&P 500. On the other hand, Xunlei boasts a beta of 1.14, suggesting that its share price is slightly more volatile than the S&P 500.
Analyst Ratings:
MarketBeat provides recent recommendations and price targets for both Agora and Xunlei. Further analysis is required to determine the consensus among analysts.
Profitability:
Comparing net margins, return on equity, and return on assets, Xunlei appears to have an edge over Agora. However, a deeper examination is necessary to fully assess their profitability.
Insider and Institutional Ownership:
Institutional investors hold 40.4% of Agora shares, indicating their belief in the company’s long-term market outperformance. In contrast, only 5.1% of Xunlei shares are held by institutional investors. Additionally, 14.6% of Agora shares are held by company insiders, while 21.7% of Xunlei shares are held by company insiders.
Earnings & Valuation:
Xunlei boasts higher revenue and earnings compared to Agora. However, Agora trades at a lower price-to-earnings ratio, making it the more affordable option between the two stocks.
In summary, Xunlei outperforms Agora in nine out of twelve factors analyzed. While Xunlei exhibits higher volatility and risk, it surpasses Agora in terms of profitability, analyst ratings, and institutional ownership. However, Agora’s lower valuation and insider ownership may still make it an attractive choice for investors.