Comparing Snap (SNAP) and iDreamSky Technology (DSKY)

Snap (NYSE: SNAP) and iDreamSky Technology (NASDAQ:DSKY) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Earnings and Valuation

This table compares Snap and iDreamSky Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Snap $404.48 million 44.21 -$514.64 million ($3.18) -4.67
iDreamSky Technology N/A N/A N/A $0.18 77.39

iDreamSky Technology has lower revenue, but higher earnings than Snap. Snap is trading at a lower price-to-earnings ratio than iDreamSky Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Snap and iDreamSky Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Snap -463.16% -107.36% -97.49%
iDreamSky Technology -1.50% -1.80% -1.34%

Analyst Recommendations

This is a breakdown of recent ratings for Snap and iDreamSky Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Snap 13 20 11 0 1.95
iDreamSky Technology 0 0 0 0 N/A

Snap presently has a consensus target price of $17.10, indicating a potential upside of 15.15%. Given Snap’s higher possible upside, analysts clearly believe Snap is more favorable than iDreamSky Technology.

Insider & Institutional Ownership

18.9% of Snap shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

iDreamSky Technology beats Snap on 5 of the 9 factors compared between the two stocks.

About Snap

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.

About iDreamSky Technology

iDreamSky Technology Limited is a holding company. The Company, through its subsidiaries, and its variable interest entities (VIEs) is principally engaged in the licensing and operating of single player mobile games and mobile online games (the listing business) in the People’s Republic of China. The Company is an independent mobile game publishing platform in China. The Company also operates games as a service, where it offers live game services, engages in live user communications and gains user insights through its multi-dimensional data analysis engine to drive ongoing game optimization and monetization. The Company provides its users with live game services and connects them through friend lists, message boards, leaderboards and user tournaments, enabling in-game interaction and social networking. Its platform offers a range of services, including game redesign and porting, ongoing optimization, marketing, distribution, monetization, payment support and user-related services.

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