- Baidu delivered the best revenue growth in 2014.
- Yandex was the most profitable of the three companies.
- Baidu's stock gained by 40% while Yandex has fallen by as much in the last 12 months.
- Valuations of the three stocks offer opportunities for different sets of investors.
- Yandex valuations are attractive, but the stock is risky bet right now.
Comparing Search Engine Stocks : Video Transcript
Google Baidu Yandex Comparion: Stock Returns
It's been a year of contrasting fortunes for search engine stocks. Baidu's stock returned a little over 40%, even as Yandex fell by nearly as much, while Google is more or less where it was a year ago.
Google Yandex Baidu Comparion: Revenue Growth
While all of these companies are financially robust, Baidu was the fastest growing among them. Yandex saw growth rates dip towards the end of the year, but managed to grow at a decent pace, given the weak macro economic environment in Russia.
Google Baidu Yandex Comparion: Profit Margins
Despite its woes, Yandex was the most profitable of the three. And Baidu saw margins contract during the year. However, at large, the three search giants continued to deliver healthy profit margins.
Google Yandex Baidu Comparion: Valuations
In terms of valuations, Yandex is the most attractive search engine stock, but is a risky investment right now, given the uncertainties that surround the Russian economy. While we see a significant upside potential for Baidu, it is currently the most expensive of the three. And of course, Google offers steady growth and profitability, for the more conservative investors.
You can see our Baidu stock analysis, Yandex stock analysis and Google stock analysis videos for a detailed roundup of fundamentals like free cach flow margins, operating cash flows, daily updated stock price movement and valuations among other things.