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Review of 9888.HK (Baidu)
18 Oct 2022 (433 views)  

I hold 7,000 shares of Baidu at an average cost of HK$ 156.2. The current price is $98.8 giving me a loss of HK$ 396,000 (SGD $71,700).

This article by Zachs Equity Research compares the fundamentals between Baidu and Alphabet (Google). 

Baidu Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Alphabet Inc. has a Zacks Rank of #3 (Hold).

The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIDU has an improving earnings outlook.

BIDU currently has a forward P/E ratio of 10.95, while GOOG has a forward P/E of 18.66. We also note that BIDU has a PEG ratio of 0.52. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GOOG currently has a PEG ratio of 1.65.

Another notable valuation metric for BIDU is its P/B ratio of 1.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GOOG has a P/B of 4.96.

BIDU sticks out from GOOG in both our Zacks Rank and Style Scores models, so value investors will likely feel that BIDU is the better option right now.

Please note that the reports from other analysts may give a different conclusion from Zachs.

I invested in Baidu based on the same approach used by Zachs, but has seen a large loss. However, I am holding Baidu for the long term, and wait for its recovery. 

Baidu also operates a fleet of autonomous taxis in several cities in China. I expect it to produce good financial results over the next few years. (So far, it has not).

Tan Kin Lian





 


Review of 9888.HK (Baidu)
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I hold 7,000 shares of Baidu at an average cost of HK$ 156.2. The current price is $98.8 giving me a loss of HK$ 396,000 (SGD $71,700).

This article by Zachs Equity Research compares the fundamentals between Baidu and Alphabet (Google). 

Baidu Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Alphabet Inc. has a Zacks Rank of #3 (Hold).

The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BIDU has an improving earnings outlook.

BIDU currently has a forward P/E ratio of 10.95, while GOOG has a forward P/E of 18.66. We also note that BIDU has a PEG ratio of 0.52. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GOOG currently has a PEG ratio of 1.65.

Another notable valuation metric for BIDU is its P/B ratio of 1.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GOOG has a P/B of 4.96.

BIDU sticks out from GOOG in both our Zacks Rank and Style Scores models, so value investors will likely feel that BIDU is the better option right now.

Please note that the reports from other analysts may give a different conclusion from Zachs.

I invested in Baidu based on the same approach used by Zachs, but has seen a large loss. However, I am holding Baidu for the long term, and wait for its recovery. 

Baidu also operates a fleet of autonomous taxis in several cities in China. I expect it to produce good financial results over the next few years. (So far, it has not).

Tan Kin Lian