GigaMedia (NASDAQ:GIGM) and Twitter (NYSE:TWTR) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

4.7% of GigaMedia shares are owned by institutional investors. Comparatively, 67.1% of Twitter shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by company insiders. Comparatively, 2.7% of Twitter shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares GigaMedia and Twitter’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GigaMedia $7.10 million 3.93 -$3.19 million N/A N/A
Twitter $3.04 billion 9.16 $1.21 billion $0.55 65.91

Twitter has higher revenue and earnings than GigaMedia.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GigaMedia and Twitter, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GigaMedia 0 0 0 0 N/A
Twitter 3 17 13 0 2.30

Twitter has a consensus price target of $39.77, suggesting a potential upside of 9.71%. Given Twitter’s higher probable upside, analysts clearly believe Twitter is more favorable than GigaMedia.

Volatility and Risk

GigaMedia has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Twitter has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares GigaMedia and Twitter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GigaMedia -44.71% -4.59% -4.28%
Twitter 42.20% 8.37% 5.44%

Summary

Twitter beats GigaMedia on 11 of the 11 factors compared between the two stocks.

GigaMedia Company Profile

GigaMedia Limited provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company offers mobile and browser-based casual games through FunTown-branded platform. Its portfolio of PC-based casual games include MahJong, a traditional Chinese tile game; sports games, Web-based RPG, and mobile games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. The company also provides Tales Runner, a multi-player online obstacle running game in which players competes by running, jumping, dashing and using items. In addition, it owns and operates GigaCloud, a provider of cloud computing solutions and related services focused on the cloud services market for SMEs in Taiwan. GigaMedia Limited was founded in 1997 and is headquartered in Taipei, Taiwan.

Twitter Company Profile


Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company operates in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.



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