Cheetah Mobile (NYSE: CMCM) and Snap (NYSE:SNAP) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
This table compares Cheetah Mobile and Snap’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
7.2% of Cheetah Mobile shares are held by institutional investors. Comparatively, 18.9% of Snap shares are held by institutional investors. 17.1% of Cheetah Mobile shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Cheetah Mobile and Snap, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cheetah Mobile currently has a consensus target price of $11.67, suggesting a potential upside of 5.58%. Snap has a consensus target price of $17.15, suggesting a potential upside of 6.90%. Given Snap’s higher possible upside, analysts plainly believe Snap is more favorable than Cheetah Mobile.
Earnings & Valuation
This table compares Cheetah Mobile and Snap’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cheetah Mobile||$657.45 million||2.41||-$11.59 million||$0.38||29.08|
|Snap||$404.48 million||47.76||-$3.83 billion||($3.18)||-5.04|
Cheetah Mobile has higher revenue and earnings than Snap. Snap is trading at a lower price-to-earnings ratio than Cheetah Mobile, indicating that it is currently the more affordable of the two stocks.
Cheetah Mobile beats Snap on 8 of the 12 factors compared between the two stocks.
About Cheetah Mobile
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.
Snap Inc., formerly Snapchat, Inc., is a camera company. The Company’s flagship product, Snapchat, is a camera application that helps people to communicate through short videos and images known as a Snap. The Company offers three ways for people to make Snaps: the Snapchat application, Publishers Tools that help its partners to create Publisher Stories, and Spectacles, its sunglasses that make Snaps. Snaps are viewed primarily through the Snapchat application, but can also be embedded on the Web or on television in certain circumstances. Snapchat opens directly into the Camera, helping in creating a Snap and sending it to friends. The Company’s advertising products include Snap Ads and Sponsored Creative Tools, such as Sponsored Lenses and Sponsored Geofilters. As of December 31, 2016, on an average, 158 million people used Snapchat every day to Snap with family, watch Stories from friends, see events from around the world, and explore curated content from publishers.
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