Hortonworks (NASDAQ:HDP) and Cheetah Mobile (NYSE:CMCM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Insider and Institutional Ownership
80.9% of Hortonworks shares are owned by institutional investors. Comparatively, 5.3% of Cheetah Mobile shares are owned by institutional investors. 15.6% of Hortonworks shares are owned by insiders. Comparatively, 17.1% of Cheetah Mobile shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations for Hortonworks and Cheetah Mobile, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hortonworks currently has a consensus target price of $27.85, suggesting a potential upside of 89.71%. Cheetah Mobile has a consensus target price of $13.00, suggesting a potential upside of 95.49%. Given Cheetah Mobile’s higher possible upside, analysts plainly believe Cheetah Mobile is more favorable than Hortonworks.
This table compares Hortonworks and Cheetah Mobile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Hortonworks has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.
Valuation and Earnings
This table compares Hortonworks and Cheetah Mobile’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hortonworks||$261.81 million||4.72||-$204.50 million||($3.06)||-4.80|
|Cheetah Mobile||$764.61 million||1.25||$207.21 million||N/A||N/A|
Cheetah Mobile has higher revenue and earnings than Hortonworks.
Cheetah Mobile beats Hortonworks on 9 of the 13 factors compared between the two stocks.
Hortonworks Company Profile
Hortonworks, Inc. provides data management platforms, services, and solutions in North America, the Asia Pacific, Europe, and Latin America. It offers Hortonworks Data Platform (HDP), an enterprise-scale data management platform which provides a platform for multi-workload data processing; Hortonworks DataFlow, a data-in-motion platform to automate and secure Internet of anything data flows, as well as to collect, conduct, and curate real-time business insights and actions derived from data in motion, including sensors, machines, geolocation devices, clicks, server logs, and social feeds; and Hortonworks DataPlane Service simplifies managing, securing, governing, provisioning, and consuming distributed data systems. The company also provides Azure HDInsight, a data cloud service that provides customers flexible big data environments on the Azure cloud; Hortonworks Data Cloud for Amazon Web Services, a big data cloud service for analyzing and processing data, and enabling businesses to achieve insights quickly and with flexibility; Hortonworks Cybersecurity Platform (HCP) offers view of business risk through a security lens; and Hortonworks Sandbox, a personal, portable, and free to use Hadoop environment designed to offer the easiest way to get started with HDP or HDF. In addition, it offers support subscription, consulting, and education services. Further, the company’s connected data platforms are primarily provided under the Apache open source license with rights to use, copy, modify, and redistribute the software. It sells its products through direct sales team and reseller partners. Hortonworks, Inc. was founded in 2011 and is headquartered in Santa Clara, California.
Cheetah Mobile Company Profile
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.
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