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How Does SouFun Holdings Compare to Its Peers?

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SouFun Holdings and its peers

In this article, we’ll compare SouFun Holdings (SFUN) to its industry peers and a few of its ETFs:

  • The PE (price-to-earnings) ratios of SouFun Holdings (SFUN), Autohome (ATHM), and SINA Corporation (SINA) are 20.3x, 33.1x, and 18.3x, respectively, as of November 18, 2015.

  • The PBV (price-to-book value) ratios of SouFun Holdings, Autohome, HomeAway (AWAY), SINA Corporation, and Sohu.com (SOHU) are 5.0x, 5.0x, 3.6x, 1.4x, and 1.6x, respectively.
  • The EPS (earnings per share) of SFUN, Autohome, HomeAway, SINA Corporation, and Sohu.com were $0.02, $2.00, $0.11, $0.16, and $1.01, respectively, in 3Q15.
  • The net profit margins of SFUN, Autohome, HomeAway, SINA Corporation, and Sohu.com were 0.56%, 25.7%, 8.0%, 4.3%, and 7.5%, respectively, in 3Q15.

According to the above findings, these peers have outperformed SouFun Holdings based on EPS and net profit margin. However, SouFun Holdings is ahead of its peers based on PBV ratio.

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ETFs that invest in SouFun Holdings 

The PowerShares Golden Dragon China Portfolio ETF (PGJ) invests 1.7% of its holdings in SouFun Holdings. The ETF tracks a market cap–weighted index of Chinese stocks. The fund holds US-listed companies that derive a majority of their revenues in China.

The First Trust ISE Chindia Index Fund (FNI) invests 0.62% of its holdings in SFUN. The ETF tracks an index of stocks from China and India screened by market cap and weighted in tiers.

The Guggenheim China Technology ETF (CQQQ) invests 1.3% of its holdings in SFUN. The ETF tracks a cap-weighted index of investable Chinese technology stocks. The fund invests across the market cap spectrum.

Comparing SouFun Holdings and its ETFs

Now let’s look at SouFun Holdings in comparison to the ETFs mentioned above:

  • The YTD (year-to-date) price movements of SFUN, PGJ, FNI, and CQQQ are -0.41%, 9.1%, -3.9%, and 4.0%, respectively.
  • The PE ratios of SFUN, PGJ, FNI, and CQQQ are 20.3x, 20.7x, 19.7x, and 16.9x, respectively.
  • The PBV ratios of SFUN, PGJ, FNI, and CQQQ are 5.0x, 2.5x, 2.8x, and 2.0x, respectively.

According to the above findings, these ETFs have outperformed SouFun Holdings based on price movement. However, SouFun Holdings is ahead of its ETFs based on PE and PBV ratios.

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