Financial Contrast: Hello Group (NASDAQ:MOMO) & Cellebrite DI (NASDAQ:CLBT)

Cellebrite DI (NASDAQ:CLBT) and Hello Group (NASDAQ:MOMO) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Cellebrite DI and Hello Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cellebrite DI	$325.11 million	11.09	-$81.10 million	($0.58)	-30.19
Hello Group	$1.69 billion	0.55	$275.72 million	$1.10	5.79

Hello Group has higher revenue and earnings than Cellebrite DI. Cellebrite DI is trading at a lower price-to-earnings ratio than Hello Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cellebrite DI and Hello Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cellebrite DI	-28.51%	5,902.06%	14.90%
Hello Group	12.40%	12.09%	8.27%

Risk & Volatility

Cellebrite DI has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

45.9% of Cellebrite DI shares are held by institutional investors. Comparatively, 51.0% of Hello Group shares are held by institutional investors. 5.7% of Cellebrite DI shares are held by insiders. Comparatively, 61.4% of Hello Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cellebrite DI and Hello Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cellebrite DI	0	0	7	0	3.00
Hello Group	1	2	2	0	2.20

Cellebrite DI currently has a consensus target price of $17.33, indicating a potential downside of 1.01%. Hello Group has a consensus target price of $7.93, indicating a potential upside of 24.41%. Given Hello Group’s higher probable upside, analysts clearly believe Hello Group is more favorable than Cellebrite DI.

Summary

Hello Group beats Cellebrite DI on 8 of the 14 factors compared between the two stocks.

About Cellebrite DI

Cellebrite DI Ltd. develops solutions for legally sanctioned investigations in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company's DI suite of solutions allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations used in various cases, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, cryptocurrency, and intellectual property theft. It provides Inseyets, a digital forensics software that collects and reviews digital evidence from various digital sources when conducting legally sanctioned investigations. The company's digital forensics software also offers data extraction, decoding capabilities, workflows, and automation capabilities. In addition, it provides Cellebrite Pathfinder, which reduces the time spent manually reviewing digital evidence by automating data analysis and visualization; Smart Search, an open source intelligence tool that automates the collection and review of publicly available online data; and Guardian, a case and evidence management solution. Further, the company offers digital forensic software for enterprises and service providers, including Inseyets for Enterprise, Endpoint Inspector, and Mobile Now; and professional services, such as training and certification services, and other services. It serves federal and state and local agencies. The company was incorporated in 1999 and is headquartered in Petah Tikva, Israel.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.