Financial Review: SINA (SINA) & Coupa Software (COUP)

SINA (NASDAQ:SINA) and Coupa Software (NASDAQ:COUP) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Earnings & Valuation

This table compares SINA and Coupa Software’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SINA $2.11 billion 1.44 $125.56 million $1.70 25.02
Coupa Software $260.37 million 26.20 -$55.52 million ($0.67) -166.03

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

Profitability

This table compares SINA and Coupa Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SINA 5.96% 3.39% 2.14%
Coupa Software -21.33% -14.28% -6.21%

Insider & Institutional Ownership

62.0% of SINA shares are held by institutional investors. 7.4% of SINA shares are held by insiders. Comparatively, 5.3% of Coupa Software shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for SINA and Coupa Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SINA 0 2 3 0 2.60
Coupa Software 0 5 11 0 2.69

SINA presently has a consensus price target of $101.38, indicating a potential upside of 138.31%. Coupa Software has a consensus price target of $96.50, indicating a potential downside of 13.25%. Given SINA’s higher possible upside, analysts clearly believe SINA is more favorable than Coupa Software.

Risk & Volatility

SINA has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Coupa Software has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Summary

SINA beats Coupa Software on 10 of the 14 factors compared between the two stocks.

About SINA

SINA Corporation, through its subsidiaries, operates as an online media company in the People's Republic of China. It operates SINA.com, an online brand advertising portal that provides region-focused format and content, including multimedia news; business news coverage and personal finance columns; sporting events news; automobile-related news; entertainment news and events; technology updates; interactive video products, such as news, sports, and entertainment; and education, digital, fashion, luxury, health, collectibles, travel, and other interest-based channels. The company also offers SINA mobile, a mobile portal, which provides news information and entertainment content from SINA.com for mobile users in mobile browser and application format. In addition, it operates Weibo.com that offers discovery products to help users discover content; self-expression products to enable users to express themselves on Weibo platform; social products to promote social interaction between users on Weibo platform; advertising and marketing solutions; and tools and services. Further, the company offers online payment, online loan facilitation, games, VIP membership, and data licensing services. Additionally, it provides mobile value added services, which allow users to receive news and information, download ring tones, mobile games and pictures, customize caller ring back tones, and participate in dating and friendship communities. SINA Corporation was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

About Coupa Software

Coupa Software, Inc. engages in providing business spend management (BSM) solutions. It offers cloud-based BSM platform that delivers a broad range of capabilities that would typically require the purchase and use of multiple disparate point applications. Its platform consists of procurement, invoicing, expense management and payments modules that form the transactional engine for managing a company’s business spend. The company was founded by Noah Eisner and Dave Stephens in 2006 and is headquartered in San Mateo, CA.

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