Snap (NYSE: SNAP) and Cheetah Mobile (NYSE:CMCM) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Institutional and Insider Ownership

18.9% of Snap shares are held by institutional investors. Comparatively, 7.2% of Cheetah Mobile shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Snap and Cheetah Mobile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap 13 20 11 0 1.95
Cheetah Mobile 0 3 0 0 2.00

Snap presently has a consensus target price of $17.15, suggesting a potential upside of 17.45%. Cheetah Mobile has a consensus target price of $11.67, suggesting a potential upside of 3.80%. Given Snap’s higher probable upside, research analysts clearly believe Snap is more favorable than Cheetah Mobile.

Profitability

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

Net Margins Return on Equity Return on Assets
Snap N/A N/A N/A
Cheetah Mobile 7.44% 10.76% 6.35%

Valuation & Earnings

This table compares Snap 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
Snap N/A N/A N/A N/A N/A
Cheetah Mobile $657.45 million 2.46 -$11.59 million $0.36 31.22

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

Summary

Cheetah Mobile beats Snap on 5 of the 8 factors compared between the two stocks.

Snap Company Profile

Snap Inc., formerly Snapchat, Inc., is a camera company. The Company’s flagship product, Snapchat, is a camera application that helps people to communicate through short videos and images known as a Snap. The Company offers three ways for people to make Snaps: the Snapchat application, Publishers Tools that help its partners to create Publisher Stories, and Spectacles, its sunglasses that make Snaps. Snaps are viewed primarily through the Snapchat application, but can also be embedded on the Web or on television in certain circumstances. Snapchat opens directly into the Camera, helping in creating a Snap and sending it to friends. The Company’s advertising products include Snap Ads and Sponsored Creative Tools, such as Sponsored Lenses and Sponsored Geofilters. As of December 31, 2016, on an average, 158 million people used Snapchat every day to Snap with family, watch Stories from friends, see events from around the world, and explore curated content from publishers.

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.

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