Cheetah Mobile (NASDAQ: CMCM) and Snap (NYSE:SNAP) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitabiliy.
Insider & Institutional Ownership
29.6% of Snap shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings for Cheetah Mobile and Snap, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheetah Mobile | 1 | 1 | 0 | 0 | 1.50 |
| Snap | 8 | 20 | 13 | 0 | 2.12 |
Cheetah Mobile presently has a consensus price target of $9.50, suggesting a potential downside of 13.95%. Snap has a consensus price target of $21.26, suggesting a potential upside of 55.53%. Given Snap’s stronger consensus rating and higher possible upside, analysts clearly believe Snap is more favorable than Cheetah Mobile.
Earnings and Valuation
This table compares Cheetah Mobile and Snap’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Cheetah Mobile | $686.45 million | 2.23 | $23.62 million | N/A | N/A |
| Snap | $515.33 million | 31.27 | -$2.59 billion | N/A | N/A |
Cheetah Mobile has higher revenue and earnings than Snap.
Profitability
This table compares Cheetah Mobile and Snap’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cheetah Mobile | 5.34% | 8.08% | 5.17% |
| Snap | N/A | N/A | N/A |
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.
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.
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