Head to Head Comparison: GigaMedia (NASDAQ:GIGM) & Professional Diversity Network (NASDAQ:IPDN)

Professional Diversity Network (NASDAQ:IPDN) and GigaMedia (NASDAQ:GIGM) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Risk & Volatility

Professional Diversity Network has a beta of 13.04, suggesting that its share price is 1,204% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Insider and Institutional Ownership

27.8% of Professional Diversity Network shares are held by institutional investors. Comparatively, 13.5% of GigaMedia shares are held by institutional investors. 3.5% of Professional Diversity Network shares are held by insiders. Comparatively, 1.0% of GigaMedia shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Professional Diversity Network and GigaMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Professional Diversity Network	-54.12%	-186.84%	-65.87%
GigaMedia	-109.81%	-8.94%	-8.37%

Analyst Ratings

This is a summary of current recommendations and price targets for Professional Diversity Network and GigaMedia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Professional Diversity Network	0	0	0	0	N/A
GigaMedia	0	0	0	0	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Professional Diversity Network	$7.70 million	0.73	-$4.31 million	($0.38)	-1.26
GigaMedia	$4.29 million	3.27	-$3.40 million	($0.37)	-3.43

GigaMedia has lower revenue, but higher earnings than Professional Diversity Network. GigaMedia is trading at a lower price-to-earnings ratio than Professional Diversity Network, indicating that it is currently the more affordable of the two stocks.

Summary

Professional Diversity Network beats GigaMedia on 6 of the 11 factors compared between the two stocks.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites; and contracted software development services. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan and Hong Kong. It operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through branded platform. The company offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. It also provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. The company was founded in 1998 and is headquartered in Taipei, Taiwan.