Baba Arts vs Baidu Which Is a Better Investment?

Baba Arts and Baidu are two major players in the Chinese technology and entertainment industries. While Baba Arts is a prominent multimedia and entertainment company known for its innovative content and creative productions, Baidu is a leading Chinese technology company specializing in internet-related services and products. Both companies have seen significant growth and success in their respective industries, making them popular choices among investors looking for exposure to the thriving Chinese market. Let's explore the key differences between their stocks and what sets them apart in terms of performance and potential for future growth.

Baba Arts or Baidu?

When comparing Baba Arts and Baidu, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Baba Arts and Baidu.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Baba Arts has a dividend yield of -%, while Baidu has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Baba Arts reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Baidu reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Baba Arts P/E ratio at 33.02 and Baidu's P/E ratio at 11.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Baba Arts P/B ratio is 2.86 while Baidu's P/B ratio is 0.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Baba Arts has seen a 5-year revenue growth of 13.91%, while Baidu's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Baba Arts's ROE at 9.11% and Baidu's ROE at 7.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹14.20 for Baba Arts and $87.55 for Baidu. Over the past year, Baba Arts's prices ranged from ₹2.51 to ₹15.39, with a yearly change of 513.15%. Baidu's prices fluctuated between $79.68 and $126.23, with a yearly change of 58.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.