Cheetah Mobile (NYSE:CMCM – Get Free Report) and AppLovin (NASDAQ:APP – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and price targets for Cheetah Mobile and AppLovin, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheetah Mobile | 1 | 0 | 0 | 0 | 1.00 |
| AppLovin | 0 | 8 | 17 | 3 | 2.82 |
AppLovin has a consensus target price of $497.93, indicating a potential upside of 26.48%. Given AppLovin’s stronger consensus rating and higher probable upside, analysts plainly believe AppLovin is more favorable than Cheetah Mobile.
Insider and Institutional Ownership
0.4% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 41.9% of AppLovin shares are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by insiders. Comparatively, 12.8% of AppLovin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Cheetah Mobile has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, AppLovin has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500.
Profitability
This table compares Cheetah Mobile and AppLovin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cheetah Mobile | -28.11% | -8.54% | -3.22% |
| AppLovin | 65.89% | 182.97% | 63.02% |
Earnings and Valuation
This table compares Cheetah Mobile and AppLovin”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cheetah Mobile | $164.51 million | 0.41 | -$36.85 million | ($1.51) | -1.49 |
| AppLovin | $5.48 billion | 24.04 | $3.33 billion | $14.86 | 26.49 |
AppLovin has higher revenue and earnings than Cheetah Mobile. Cheetah Mobile is trading at a lower price-to-earnings ratio than AppLovin, indicating that it is currently the more affordable of the two stocks.
Summary
AppLovin beats Cheetah Mobile on 13 of the 14 factors compared between the two stocks.
About Cheetah Mobile
Cheetah Mobile Inc. was a Chinese internet company that developed and operated mobile applications and online services. Founded in 2009 through the combination of Kingsoft’s internet security business and Conew Image, the company focused initially on mobile security, system optimization and utility software. Its best-known products included Clean Master, Security Master, Battery Doctor and CM Browser, which offered device-cleaning, antivirus, privacy, battery-management and mobile browsing features.
About AppLovin
AppLovin is a technology company that provides software to help mobile app developers and advertisers grow their businesses. Its platform connects advertisers seeking users with app publishers looking to monetize their audiences, using data and machine-learning tools to support advertising and user acquisition. The company’s products include AXON, its advertising optimization engine; AppDiscovery, which helps advertisers find and acquire users; and MAX, a platform for managing in-app advertising.
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