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The Internet's Biggest Revenue Generators Redux

Back in May, StockTracker Daily listed the 10 biggest revenue generators among Internet companies, based on recent quarterly revenue figures.

With the latest round of earnings reports over and another looming next month, let's look at an expanded list of top 'Net money magnets, along with their market capitalizations through Tuesday's close and their valuations based on trailing 12 months' revenue:

  		                   Market     Valuation
Symbol	Company Name	  RRQ	  Cap. (mm)	TTM

CSCO	Cisco Systems	5,720.0   387,628.8     20.5x
AOL	America Online 	1,929.0	  128,988.2     18.8x
AMZN	Amazon.com	  577.9	   14,145.6      6.5x
PALM	Palm	          401.0	   31,376.6     25.3x
MRCH	marchFIRST	  380.2	    2,365.9      2.7x
CMGI	CMGI              377.2	    8,986.2     10.2x
PCLN	priceline.com 	  352.1	    3,106.1      3.1x
EGRP	E*TRADE 	  330.3	    5,042.2      4.4x
PSIX	PSINet 	          278.3	    1,900.7      2.3x
YHOO	Yahoo! 	          270.1	   56,272.7     65.8x
IDTC	IDT 	          231.3	    1,371.3      1.8x
BRCM	Broadcom 	  245.2	   57,063.5     77.6x
ITWO	i2 Technologies	  242.6	   36,479.0     48.6x
ELNK	EarthLink	  230.9	    1,280.6      1.3x
BUYX	BUY.COM 	  193.2	      393.5      0.5x
EXDS	Exodus	          179.6	   23,335.5     48.3x
AMTD	Ameritrade 	  172.3	    2,956.4      5.0x
ATHM	At Home 	  148.7	    5,531.3     10.5x
CTIX	Cheap Tickets	  128.7	      256.0      0.4x
DCLK	DoubleClick	  128.1	    4,455.7     10.0x

One thing that's clear is valuations have dropped across the board since May. Yahoo remains the most expensive stock in the top 10, though its valuation based on TTM revenues has dropped to 65.8x from 88.6x.

While the top three revenue-generators remain the same since last quarter, E*Trade Group drops from the No. 4 slot, the victim of a downturn in online trading volume. EGRP's revenues fell to $330.3 million in Q3 from $407 million in the previous quarter.

Cisco Systems still is far and away the Internet's sales champion, with nearly three times the revenue of runner-up AOL.

The cheapest (no pun intended) stocks here are Buy.com and Cheap Tickets , each of which are valued at less than half TTM revenues. However, while Buy.com continues to lose money, CTIX has been profitable for at least the past five quarters.

Among the largest revenue generators, Internet consulting services giant marchFIRST is the best bargain, trading at 2.7x TTM revenues, though merger-related costs caused MRCH to lose money in the past two quarters. marchFIRST was formed when Whittman-Hart merged with USWeb/CKS.



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