Fusemachines (NASDAQ:FUSE – Get Free Report) and Kingsoft Cloud (NASDAQ:KC – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Risk and Volatility
Fusemachines has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Kingsoft Cloud has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.
Institutional and Insider Ownership
46.8% of Fusemachines shares are held by institutional investors. Comparatively, 13.4% of Kingsoft Cloud shares are held by institutional investors. 31.8% of Fusemachines shares are held by insiders. Comparatively, 14.2% of Kingsoft Cloud shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fusemachines | 1 | 0 | 0 | 0 | 1.00 |
| Kingsoft Cloud | 1 | 1 | 5 | 0 | 2.57 |
Kingsoft Cloud has a consensus price target of $17.15, suggesting a potential upside of 50.57%. Given Kingsoft Cloud’s stronger consensus rating and higher probable upside, analysts clearly believe Kingsoft Cloud is more favorable than Fusemachines.
Profitability
This table compares Fusemachines and Kingsoft Cloud’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fusemachines | N/A | N/A | N/A |
| Kingsoft Cloud | -9.38% | -11.67% | -3.59% |
Earnings & Valuation
This table compares Fusemachines and Kingsoft Cloud”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fusemachines | $7.71 million | 3.14 | -$930,000.00 | ($0.13) | -6.43 |
| Kingsoft Cloud | $1.37 billion | 2.52 | -$133.88 million | ($0.47) | -24.23 |
Fusemachines has higher earnings, but lower revenue than Kingsoft Cloud. Kingsoft Cloud is trading at a lower price-to-earnings ratio than Fusemachines, indicating that it is currently the more affordable of the two stocks.
Summary
Fusemachines beats Kingsoft Cloud on 9 of the 14 factors compared between the two stocks.
About Fusemachines
Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.
About Kingsoft Cloud
Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.
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