Contrasting Lee Enterprises (LEE) and 51job (JOBS)

Lee Enterprises (NYSE: LEE) and 51job (NASDAQ:JOBS) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

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This is a breakdown of current recommendations and price targets for Lee Enterprises and 51job, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lee Enterprises 0 0 0 0 N/A
51job 0 0 2 0 3.00

51job has a consensus price target of $60.00, suggesting a potential downside of 30.26%. Given 51job’s higher possible upside, analysts plainly believe 51job is more favorable than Lee Enterprises.

Profitability

This table compares Lee Enterprises and 51job’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lee Enterprises 9.04% -18.41% 2.59%
51job 13.05% 15.72% 9.76%

Insider & Institutional Ownership

33.6% of Lee Enterprises shares are owned by institutional investors. Comparatively, 41.8% of 51job shares are owned by institutional investors. 8.8% of Lee Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Lee Enterprises and 51job’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lee Enterprises $566.94 million 0.20 $27.48 million $0.31 6.29
51job $437.82 million 12.14 $57.15 million $2.11 40.78

51job has lower revenue, but higher earnings than Lee Enterprises. Lee Enterprises is trading at a lower price-to-earnings ratio than 51job, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Lee Enterprises has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, 51job has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Summary

51job beats Lee Enterprises on 10 of the 13 factors compared between the two stocks.

About Lee Enterprises

Lee Enterprises, Incorporated is a provider of local news and information, and a platform for print and digital advertising. The Company’s products included 46 daily and 34 Sunday newspapers, 300 weekly newspapers, and classified and niche publications, as of September 25, 2016. The Company also provides a range of digital products, including video, digital couponing, behavioral targeting, audience retargeting, banner advertisements and social networking. It provides digital marketing services to small and midsized businesses (SMBs), including search engine marketing (SEM), social media, audience extension, business profiles, and Website hosting and design. It offers small business solutions, including search engine optimization (SEO), local online marketing, social media marketing, video advertising and Website design. The markets it caters to are located primarily in the Midwest, Mountain West and West regions of the United States.

About 51job

51job, Inc. is a holding company. The Company is a provider of integrated human resource services in China. The Company focuses on online recruitment advertising. The Company operates over three Websites, including www.51job.com, www.yingjiesheng.com and www.51jingying.com, which are utilized by a base of corporate employers, reach an audience of job seekers and aggregate job information from over 100 cities across China. The Company provides a range of human resource services in the categories, such as recruitment advertising services, including online recruitment services provided by its Websites, and other human resource related services, including business process outsourcing, training, campus recruitment, professional assessment tools, salary and other human resource related surveys, human resource conferences and executive search services.

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