Momo (MOMO) & Qudian (QD) Critical Analysis

Qudian (NYSE: QD) and Momo (NASDAQ:MOMO) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Qudian and Momo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qudian 0 0 6 0 3.00
Momo 0 1 10 0 2.91

Qudian presently has a consensus target price of $21.00, suggesting a potential upside of 77.22%. Momo has a consensus target price of $40.91, suggesting a potential upside of 71.60%. Given Qudian’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Qudian is more favorable than Momo.

Valuation and Earnings

This table compares Qudian and Momo’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qudian N/A N/A N/A N/A N/A
Momo $553.10 million 8.38 $145.25 million $1.48 16.11

Momo has higher revenue and earnings than Qudian.

Profitability

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

Net Margins Return on Equity Return on Assets
Qudian N/A N/A N/A
Momo 25.88% 39.60% 32.36%

Institutional and Insider Ownership

40.6% of Momo shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Momo beats Qudian on 6 of the 8 factors compared between the two stocks.

Qudian Company Profile

Qudian Inc. provides cash credit products, which provide funds in digital form, and merchandise credit products. The Company operates through an online platform and all the transaction are facilitated through mobile devices. Borrowers can apply for credit on their mobile phones and receive approval within a few seconds. Approved borrowers are then able to draw down on their cash credit with cash disbursed immediately into their Alipay accounts in digital form. It also offers merchandise credit products to finance borrowers’ direct purchase of merchandise offered on its marketplace on installment basis. Its marketplace connects consumers with merchandise suppliers. It offers 14 categories of merchandise from over 1,000 brands covering primarily consumer electronics, home appliances, watches and accessories, sports and outdoor merchandise and luggage.

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.

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