Cheetah Mobile (NYSE:CMCM – Get Free Report) and BlackBerry (NYSE:BB – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.
Profitability
This table compares Cheetah Mobile and BlackBerry’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% |
| BlackBerry | 13.09% | 13.71% | 8.36% |
Analyst Recommendations
This is a summary of current ratings and target prices for Cheetah Mobile and BlackBerry, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheetah Mobile | 1 | 0 | 0 | 0 | 1.00 |
| BlackBerry | 0 | 7 | 2 | 0 | 2.22 |
BlackBerry has a consensus target price of $9.86, suggesting a potential upside of 4.90%. Given BlackBerry’s stronger consensus rating and higher probable upside, analysts clearly believe BlackBerry is more favorable than Cheetah Mobile.
Earnings and Valuation
This table compares Cheetah Mobile and BlackBerry”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cheetah Mobile | $164.51 million | 0.41 | -$36.85 million | ($1.51) | -1.46 |
| BlackBerry | $549.10 million | 10.02 | $53.20 million | $0.12 | 78.31 |
BlackBerry has higher revenue and earnings than Cheetah Mobile. Cheetah Mobile is trading at a lower price-to-earnings ratio than BlackBerry, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Cheetah Mobile has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, BlackBerry has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500.
Insider and Institutional Ownership
0.4% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 54.5% of BlackBerry shares are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by insiders. Comparatively, 0.5% of BlackBerry shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
BlackBerry beats Cheetah Mobile on 12 of the 13 factors compared between the two stocks.
About Cheetah Mobile
Cheetah Mobile Inc. was a Chinese internet company that developed and operated mobile applications and online services. Founded in 2009 through the combination of Kingsoft’s internet security business and Conew Image, the company focused initially on mobile security, system optimization and utility software. Its best-known products included Clean Master, Security Master, Battery Doctor and CM Browser, which offered device-cleaning, antivirus, privacy, battery-management and mobile browsing features.
About BlackBerry
BlackBerry Limited is a Canadian software company that provides cybersecurity and secure communications products, as well as embedded software for vehicles and other connected systems. The company serves businesses, government agencies and organizations around the world. Its cybersecurity and communications offerings include endpoint protection, device and identity management, secure messaging, and crisis communications. BlackBerry also develops QNX software, an embedded operating system and development platform used in automotive systems and other safety-critical applications.
Receive News & Ratings for Cheetah Mobile Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cheetah Mobile and related companies with MarketBeat.com's FREE daily email newsletter.
