iQIYI vs Baidu Which Is More Profitable?

iQIYI and Baidu are two prominent technology companies based in China that have garnered significant attention in the stock market. iQIYI, often referred to as the "Netflix of China," is a leading online streaming platform, while Baidu is a major player in the Chinese search engine market. Both companies have seen fluctuations in their stock prices due to various factors such as competition, regulatory changes, and market trends. Understanding the strengths and weaknesses of each company can help investors make informed decisions when considering investing in iQIYI vs Baidu stocks.

iQIYI or Baidu?

When comparing iQIYI 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 iQIYI 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. iQIYI 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. iQIYI 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 iQIYI P/E ratio at 11.25 and Baidu's P/E ratio at 8.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. iQIYI P/B ratio is 1.21 while Baidu's P/B ratio is 0.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, iQIYI has seen a 5-year revenue growth of -0.28%, while Baidu's is 8.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with iQIYI's ROE at 11.14% and Baidu's ROE at 7.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.16 for iQIYI and $89.26 for Baidu. Over the past year, iQIYI's prices ranged from $1.89 to $5.80, with a yearly change of 206.88%. Baidu's prices fluctuated between $78.95 and $120.25, with a yearly change of 52.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.