Head to Head Survey: Momo (MOMO) and Cheetah Mobile (CMCM)

Momo (NASDAQ: MOMO) and Cheetah Mobile (NYSE:CMCM) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

44.3% of Momo shares are owned by institutional investors. Comparatively, 7.1% of Cheetah Mobile shares are owned by institutional investors. 61.4% of Momo shares are owned by insiders. Comparatively, 17.1% of Cheetah Mobile shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Momo and Cheetah Mobile’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Momo $553.10 million 11.29 $145.25 million $1.29 24.89
Cheetah Mobile $657.45 million 2.71 -$11.59 million $0.24 51.75

Momo has higher revenue, but lower earnings than Cheetah Mobile. Momo is trading at a lower price-to-earnings ratio than Cheetah Mobile, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Momo and Cheetah Mobile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Momo 0 1 10 0 2.91
Cheetah Mobile 0 3 0 0 2.00

Momo presently has a consensus price target of $43.55, indicating a potential upside of 35.61%. Cheetah Mobile has a consensus price target of $11.17, indicating a potential downside of 10.09%. Given Momo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Momo is more favorable than Cheetah Mobile.

Risk & Volatility

Momo has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 3.01, suggesting that its share price is 201% more volatile than the S&P 500.

Profitability

This table compares Momo and Cheetah Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Momo 27.00% 38.94% 32.00%
Cheetah Mobile 7.44% 11.03% 6.50%

Summary

Momo beats Cheetah Mobile on 11 of the 14 factors compared between the two stocks.

Momo Company Profile

Momo Inc. is a holding company. The Company operates Momo, a mobile-based social networking platform. The Company’s Momo platform includes its Momo mobile application and a range of related features, functionalities, tools and services that it provides to users, customers and platform partners. Momo users can maintain their relationships through its private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on its platform. It also offers live music and entertainment broadcasts on its Momo platform. The Momo mobile application, which is available on android, iPhone operating system (iOS) and Windows platforms, enables users to establish social relationships based on locations and interests. Momo offers a personal way for users to discover people nearby, and the Company facilitates the connecting, communicating, interacting, and content sharing with others.

Cheetah Mobile Company Profile

Cheetah Mobile Inc. is a holding company. The Company and its consolidated subsidiaries, variable interest entities (VIEs) and a VIE’s subsidiary are engaged in the provision of online marketing services, Internet value-added services, and Internet security services and others. The Company operates a platform that offers mobile and personal computer (PC) applications for its users and global content promotional channels for its customers, both of which are powered by its cloud-based data analytics engines. For its users, its diversified suite of applications optimizes mobile and PC Internet system performance, and provides real time protection against known and unknown security threats. Its data analytics engines perform real time analysis of mobile applications, program files and Websites on their devices for behavior that may impair system performance or impose security risks.

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