Cheetah Mobile (NASDAQ: CMCM) and GrubHub (NASDAQ:GRUB) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cheetah Mobile and GrubHub, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheetah Mobile 0 2 0 0 2.00
GrubHub 1 10 13 0 2.50

Cheetah Mobile currently has a consensus price target of $12.00, suggesting a potential upside of 24.87%. GrubHub has a consensus price target of $50.77, suggesting a potential downside of 7.64%. Given Cheetah Mobile’s higher probable upside, equities research analysts clearly believe Cheetah Mobile is more favorable than GrubHub.

Profitability

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

Net Margins Return on Equity Return on Assets
Cheetah Mobile 6.11% 8.91% 5.22%
GrubHub 9.29% 5.84% 4.76%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cheetah Mobile $725.72 million 1.84 $44.38 million N/A N/A
GrubHub $575.85 million 8.25 $125.16 million N/A N/A

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

Summary

GrubHub beats Cheetah Mobile on 6 of the 10 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.

GrubHub Company Profile

Grubhub Inc. provides an online and mobile platform for restaurant pick-up and delivery orders. Its products include Grubhub and Seamless Mobile Applications and Mobile Website, Grubhub and Seamless Websites, Corporate Program, Delivery, Allmenus and MenuPages, Grubhub for Restaurants, and Restaurant Websites. As of December 31, 2016, the Company connected more than 50,000 local restaurants with diners in more than 1,100 cities across the United States. In certain markets, the Company also provides delivery services to restaurants on its platform that do not have their own delivery operations. The Company provides diners on the platform with a personalized platform that helps them search for local restaurants and then place an order from an Internet-connected device. It also provides diners with information about their orders and status. The Company also provides delivery services to restaurants on its platform that do not have their own delivery operations.

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