Momo (NASDAQ: MOMO) and Qudian (NYSE:QD) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Valuation & Earnings
This table compares Momo and Qudian’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Momo||$553.10 million||8.89||$145.25 million||$1.48||16.74|
|Qudian||$212.83 million||21.79||$85.06 million||N/A||N/A|
This is a summary of current ratings and price targets for Momo and Qudian, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Momo currently has a consensus target price of $40.91, suggesting a potential upside of 65.16%. Qudian has a consensus target price of $21.00, suggesting a potential upside of 49.47%. Given Momo’s higher probable upside, analysts clearly believe Momo is more favorable than Qudian.
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 stock is poised for long-term growth.
This table compares Momo and Qudian’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Momo beats Qudian on 8 of the 10 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.
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.
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