Kingdee International Software Group (OTCMKTS:KGDEY) versus Cellebrite DI (NASDAQ:CLBT) Financial Analysis

Kingdee International Software Group (OTCMKTS:KGDEY) and Cellebrite DI (NASDAQ:CLBT) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

45.9% of Cellebrite DI shares are held by institutional investors. 5.7% of Cellebrite DI shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Kingdee International Software Group and Cellebrite DI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingdee International Software Group	N/A	N/A	N/A
Cellebrite DI	14.48%	18.38%	9.68%

Analyst Ratings

This is a summary of recent recommendations for Kingdee International Software Group and Cellebrite DI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingdee International Software Group	0	0	0	1	4.00
Cellebrite DI	0	1	5	0	2.83

Cellebrite DI has a consensus price target of $21.40, suggesting a potential upside of 66.80%. Given Cellebrite DI’s higher probable upside, analysts plainly believe Cellebrite DI is more favorable than Kingdee International Software Group.

Earnings and Valuation

This table compares Kingdee International Software Group and Cellebrite DI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingdee International Software Group	$974.65 million	3.23	$12.92 million	N/A	N/A
Cellebrite DI	$475.67 million	6.73	$78.33 million	$0.28	45.82

Cellebrite DI has lower revenue, but higher earnings than Kingdee International Software Group.

Volatility & Risk

Kingdee International Software Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Cellebrite DI has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Cellebrite DI beats Kingdee International Software Group on 10 of the 13 factors compared between the two stocks.

About Kingdee International Software Group

Kingdee International Software Group Company Limited, an investment holding company, engages in the enterprise resource planning business. The company operates through ERP Business and Others, Cloud Services Business, and Investment Properties Operating Business segments. The ERP Business and Others segment sells software and hardware products; and provides software solution consulting, maintenance, upgrade, and other supporting services, as well as software implementation services. The Cloud Services Business segment provides enterprise, finance, industry, and other cloud services. The Investment Properties Operating Business segment invests in properties and office buildings. The company also designs, develops, manufactures, and sells software and hardware products; provides software-related and online financial services; and develops Internet and online pay technologies. It serves enterprises, government agencies, and other organizations worldwide. Kingdee International Software Group Company Limited was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

About Cellebrite DI

Cellebrite DI Ltd. develops solutions for legally sanctioned investigations in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company's DI suite of solutions allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations used in various cases, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, cryptocurrency, and intellectual property theft. It provides Inseyets, a digital forensics software that collects and reviews digital evidence from various digital sources when conducting legally sanctioned investigations. The company's digital forensics software also offers data extraction, decoding capabilities, workflows, and automation capabilities. In addition, it provides Cellebrite Pathfinder, which reduces the time spent manually reviewing digital evidence by automating data analysis and visualization; Smart Search, an open source intelligence tool that automates the collection and review of publicly available online data; and Guardian, a case and evidence management solution. Further, the company offers digital forensic software for enterprises and service providers, including Inseyets for Enterprise, Endpoint Inspector, and Mobile Now; and professional services, such as training and certification services, and other services. It serves federal and state and local agencies. The company was incorporated in 1999 and is headquartered in Petah Tikva, Israel.