as the most Diamond cuts diamond. the two competitors for Chinese Internet, Baidu and 360 striking development. Sohu IT the financial analysis index to Baidu and Qihoo, show the key indicators of these two competitors.

1, revenue and net profit contrast: Baidu earned a month of money equal to 360 years before earning

2012 Q4

Baidu

revenue is equal to 10: Baidu Revenue $1 billion 17 million, 360 for the first time exceeded $100 million, reaching $103 million.

 

net profit Baidu top 360: Baidu net profit of $448 million 700 thousand in the quarter, net profit of $360, net profit of Baidu is 360 times more than 35 of the $35.

Baidu

net interest rate equivalent to lie several money, 360 profit rate is more reasonable: Baidu’s net interest rate up to 44%, the net interest rate of 360 to 12.4%.

2, Baidu market value of less than 8 times 360; market share: Baidu is about 8 times of Qihoo.

two different strategies, will inevitably lead to a different price and valuation of the two. Over the past year, Baidu’s stock price volatility fell, while the 360 volatility floating. As of March 5th, Baidu market capitalization of $31 billion 950 million, a market capitalization of $4 billion 90 million to $360.

 

market share of the two sides and its current market value of the basic similarity. Baidu accounted for about 80% of market share (expected), Qihoo accounted for 10% market share (according to Zhou Hongyi disclosed), Baidu’s market share is about 8 times of the Qihoo.

3, advertising revenue growth slowed

 

Baidu advertising revenue slowdown in one hand because of its large volume increment is limited, but also by the impact of the macroeconomic environment, the more important reason is because the PC client in the industry as a whole to move, and traffic acquisition costs increase, the need for more marketing activities.

360 is due in the third quarter of 2012 launched its own search, from the previous search partner’s income greatly reduced, its advertising revenue growth fell from an increase of 90% from the second quarter of 2012 to the third quarter of 66%, to the 49% quarter.

4, in the business structure, Baidu mainly rely on advertising, the game is currently relying on the 360, the future will be an important part of the search advertising.

advertising accounted for nearly 94% of Baidu’s total revenue, other business income. And the growth of mobile search in a short period of time and can not make up for the weakness of PC services.