Cheetah Mobile (NYSE:CMCM) and Zuora (NYSE:ZUO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Earnings and Valuation
This table compares Cheetah Mobile and Zuora’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cheetah Mobile||$724.56 million||0.77||$169.72 million||$1.18||3.31|
|Zuora||$235.20 million||6.70||-$77.59 million||($0.82)||-17.30|
Cheetah Mobile has higher revenue and earnings than Zuora. Zuora is trading at a lower price-to-earnings ratio than Cheetah Mobile, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
4.7% of Cheetah Mobile shares are held by institutional investors. Comparatively, 44.7% of Zuora shares are held by institutional investors. 17.1% of Cheetah Mobile shares are held by company insiders. Comparatively, 26.0% of Zuora shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Cheetah Mobile and Zuora’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Cheetah Mobile and Zuora, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cheetah Mobile currently has a consensus price target of $3.17, indicating a potential downside of 18.80%. Zuora has a consensus price target of $18.91, indicating a potential upside of 33.26%. Given Zuora’s stronger consensus rating and higher probable upside, analysts clearly believe Zuora is more favorable than Cheetah Mobile.
Risk and Volatility
Cheetah Mobile has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, Zuora has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.
Cheetah Mobile beats Zuora on 8 of the 14 factors compared between the two stocks.
About Cheetah Mobile
Cheetah Mobile Inc. operates as a mobile Internet company worldwide. The company’s utility products include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices; Security Master, an anti-virus and security application for mobile devices; Battery Doctor, a power optimization tool for mobile devices; Cheetah Browser, a Web browser for PCs and mobile devices; CM Browser, a mobile browser to protect users from malicious threats; and CM Launcher, which provides personalized experience in using smart phones. Its utility products also comprise Cheetah Keyboard, an artificial intelligence (AI)-enabled application; Photo Grid, a photo collage application for mobile devices; CM Locker, a lock screen with notifications and security; Duba Anti-virus, an Internet security application for PC and mobile devices; and SafeWallet, a mobile digital wallet. In addition, the company offers Live.me, a live video streaming application; and Cheez, an interactive short video application. Further, it provides mobile games comprising Piano Tiles 2, Rolling Sky, Dancing Line, Arrow.io, Tap Tap Fish, and Tap Tap Dash; and Cheetah Voicepod, an AI-based smart speaker. Additionally, the company offers mobile advertising platform; duba.com personal start page that aggregates online resources and provides users access to their online destinations; and cloud-based data analytics engines, as well as mobile advertising, and Web and mobile games publisher services. It serves direct advertisers that include mobile application developers, mobile game developers, and e-commerce companies, as well as search engines and partnering mobile advertising networks. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is headquartered in Beijing, People’s Republic of China.
Zuora, Inc. provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The company offers Zuora Central platform that acts as an intelligent subscription management hub that automates the subscription order-to-cash process, including quoting, billing, collections, analytics, and revenue recognition. Its products include Zuora Billing, Zuora RevPro, Zuora CPQ, Zuora Insights, and Zuora Collect. Zuora, Inc. sells its products through its direct sales force and with GSI partners to various industries comprising software, hardware, media, transportation, construction, healthcare, education, retail, Internet of Things, and others worldwide. The company was incorporated in 2006 and is headquartered in San Mateo, California.
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