Cheetah Mobile (CMCM) and Snap (SNAP) Critical Contrast

Cheetah Mobile (NYSE: CMCM) and Snap (NYSE:SNAP) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

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
Cheetah Mobile 7.44% 10.76% 6.35%
Snap N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cheetah Mobile and Snap, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheetah Mobile 0 3 0 0 2.00
Snap 13 20 11 0 1.95

Cheetah Mobile presently has a consensus price target of $11.67, suggesting a potential upside of 4.17%. Snap has a consensus price target of $17.15, suggesting a potential upside of 7.64%. Given Snap’s higher possible upside, analysts plainly believe Snap is more favorable than Cheetah Mobile.

Institutional and Insider Ownership

7.2% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 18.9% of Snap shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheetah Mobile $657.45 million 2.45 -$11.59 million $0.36 31.11
Snap N/A N/A N/A N/A N/A

Snap has lower revenue, but higher earnings than Cheetah Mobile.

Summary

Cheetah Mobile beats Snap on 5 of the 8 factors compared between the two stocks.

Cheetah Mobile Company Profile

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 Company Profile

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.

What are top analysts saying about Cheetah Mobile? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Cheetah Mobile and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit