SITO Mobile (NASDAQ: SITO) and Cheetah Mobile (NASDAQ:CMCM) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitabiliy, risk and valuation.

Institutional & Insider Ownership

13.4% of SITO Mobile shares are held by institutional investors. 6.5% of SITO Mobile shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for SITO Mobile and Cheetah Mobile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SITO Mobile 0 2 4 0 2.67
Cheetah Mobile 1 1 0 0 1.50

SITO Mobile currently has a consensus price target of $5.26, indicating a potential upside of 24.94%. Cheetah Mobile has a consensus price target of $9.50, indicating a potential downside of 13.71%. Given SITO Mobile’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SITO Mobile is more favorable than Cheetah Mobile.

Earnings and Valuation

This table compares SITO Mobile and Cheetah Mobile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SITO Mobile $31.07 million 2.80 -$2.14 million ($0.15) -28.06
Cheetah Mobile $686.45 million 2.23 $23.62 million N/A N/A

Cheetah Mobile has higher revenue and earnings than SITO Mobile.

Profitability

This table compares SITO Mobile and Cheetah Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SITO Mobile -9.26% -12.25% -6.07%
Cheetah Mobile 5.34% 8.08% 5.17%

Summary

SITO Mobile beats Cheetah Mobile on 6 of the 11 factors compared between the two stocks.

About SITO Mobile

SITO Mobile, Ltd. operates a mobile location-based advertising platform serving businesses, advertisers and brands. The Company’s offerings include SITO Location-Based Advertising and SITO Mobile Messaging. SITO Location-Based Advertising delivers display advertisements and videos on behalf of advertisers, including various features, such as Geo-fencing, Verified walk-in, Behavioral Targeting, and Analytics and Optimization. Geo-fencing targets customers within a certain radius of location and uses technology to push coupons, advertisements and promotions to mobile applications. Verified Walk-in tracks foot-traffic to locations and which advertisements drive action. Behavioral Targeting tracks past behaviors over 30 to 90 day increments allowing for real-time campaign management. Analytics and Optimization is a culling and building measurement system. SITO Mobile Messaging is a platform for building and controlling programs, including messaging and customer incentive programs.

About Cheetah Mobile

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.

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