Analyzing Cheetah Mobile (NYSE:CMCM) and Yext (NYSE:YEXT)

Cheetah Mobile (NYSE:CMCM – Get Free Report) and Yext (NYSE:YEXT – Get Free Report) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Cheetah Mobile -28.11% -8.54% -3.22%
Yext 5.90% 43.23% 7.50%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cheetah Mobile and Yext, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheetah Mobile 1 0 0 0 1.00
Yext 0 5 0 0 2.00

Yext has a consensus target price of $6.33, suggesting a potential downside of 2.94%. Given Yext’s stronger consensus rating and higher probable upside, analysts clearly believe Yext is more favorable than Cheetah Mobile.

Valuation & Earnings

This table compares Cheetah Mobile and Yext”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheetah Mobile $164.51 million 0.50 -$36.85 million ($1.51) -1.80
Yext $446.58 million 1.45 $37.87 million $0.17 38.38

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

Risk & Volatility

Cheetah Mobile has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Yext has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Institutional & Insider Ownership

0.4% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 71.0% of Yext shares are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by company insiders. Comparatively, 7.8% of Yext shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Yext beats Cheetah Mobile on 11 of the 13 factors compared between the two stocks.

About Cheetah Mobile

(Get Free Report)

Cheetah Mobile Inc. along with its subsidiaries, engages in provision of internet services, artificial intelligence, and other services in the People's Republic of China, Hong Kong, Japan, and internationally. The company's internet products include Duba Anti-virus, an internet security application to protect users against known and unknown security threats and malicious applications; and Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices. It also offers value-added products, such as PC and mobile products, as well as wallpaper, office optimization software, and others; E-Coupon vending robot, a delivery and reception robot, which includes marketing campaigns and services; and multi-cloud management platform and overseas advertising agency service. In addition, the company provides mobile advertising services; duba.com personal start page that aggregates online resources and provides users access to their online destinations, such as online shopping, video, online game, travel, and local information; artificial intelligence and other services; and premium membership services. It serves mobile advertising networks and partners, e-commerce companies, mobile application developers, and mobile game developers, as well as individual customers. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is based in Beijing, the People's Republic of China.

About Yext

(Get Free Report)

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

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