Head-To-Head Comparison: DouYu International (NASDAQ:DOYU) vs. AppLovin (NASDAQ:APP)

AppLovin (NASDAQ:APP) and DouYu International (NASDAQ:DOYU) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Volatility & Risk

AppLovin has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares AppLovin and DouYu International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AppLovin	16.46%	51.55%	11.31%
DouYu International	-1.35%	0.62%	0.50%

Earnings & Valuation

This table compares AppLovin and DouYu International’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppLovin	$2.63 billion	10.53	$356.71 million	$1.68	50.21
DouYu International	$778.94 million	0.71	$5.00 million	($0.38)	-45.76

AppLovin has higher revenue and earnings than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than AppLovin, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

41.9% of AppLovin shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 14.7% of AppLovin shares are held by insiders. Comparatively, 17.3% of DouYu International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for AppLovin and DouYu International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppLovin	1	5	12	0	2.61
DouYu International	1	3	0	0	1.75

AppLovin currently has a consensus target price of $71.72, indicating a potential downside of 14.99%. DouYu International has a consensus target price of $10.25, indicating a potential downside of 41.06%. Given AppLovin’s stronger consensus rating and higher possible upside, research analysts plainly believe AppLovin is more favorable than DouYu International.

Summary

AppLovin beats DouYu International on 13 of the 14 factors compared between the two stocks.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People's Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, and organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People's Republic of China.