Alithya Group (NASDAQ:ALYA – Get Rating) and Weibo (NASDAQ:WB – Get Rating) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Valuation and Earnings
This table compares Alithya Group and Weibo’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alithya Group | $506.45 million | 0.31 | -$12.40 million | ($0.13) | -13.77 |
| $1.84 billion | 1.95 | $85.56 million | $0.36 | 42.53 |
Weibo has higher revenue and earnings than Alithya Group. Alithya Group is trading at a lower price-to-earnings ratio than Weibo, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alithya Group | 0 | 3 | 2 | 0 | 2.40 |
| 1 | 3 | 1 | 0 | 2.00 |
Alithya Group presently has a consensus price target of $3.44, suggesting a potential upside of 92.04%. Weibo has a consensus price target of $27.90, suggesting a potential upside of 82.23%. Given Alithya Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Alithya Group is more favorable than Weibo.
Institutional and Insider Ownership
20.6% of Alithya Group shares are held by institutional investors. Comparatively, 27.5% of Weibo shares are held by institutional investors. 7.6% of Alithya Group shares are held by insiders. Comparatively, 41.3% of Weibo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Alithya Group has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Weibo has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
Profitability
This table compares Alithya Group and Weibo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alithya Group | -3.44% | -8.57% | -3.64% |
| 4.66% | 12.79% | 6.09% |
Summary
Weibo beats Alithya Group on 10 of the 14 factors compared between the two stocks.
About Alithya Group
Alithya Group Inc. provides strategy and digital technology services in Canada, the United States, and Europe. The company's business strategy services include strategic consulting, digital transformation, organizational performance, and enterprise architecture services. It also provides application services, such as digital applications DevOps, legacy systems modernization, control and software engineering, cloud infrastructure, quality assurance, and automated testing; enterprise solutions comprising enterprise resource planning, corporate performance management, customer relationship management, and human capital management; and data and analytics solutions, including business intelligence, data management, artificial intelligence (AI), and machine learning, as well as internet of things. In addition, the company provides AI-FI, an integrated artificial intelligence and fidelity solution; Alithya GoTest, solution allows clients to test the functionality of applications on various platforms; CASSI analytics for online weekly maintenance, outage management, petrochemical turnarounds, and maintenance and reliability; and SIDER, a secure solution that facilitates distribution of medical results to healthcare sectors and to centralized electronic medical records. It serves financial services, energy, manufacturing, telecommunications, transportation and logistics, professional services, healthcare, and government sectors. Alithya Group Inc. was founded in 1992 and is headquartered in Montreal, Canada.
About Weibo
Weibo Corp. engages in the creation, distribution, and discovery of Chinese-language content. It operates through the Advertising and Marketing Services, and Other Services segments. The company was founded in August 2009 and is headquartered in Beijing, China.
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