Head to Head Survey: Cheetah Mobile (NYSE:CMCM) and Yext (NYSE:YEXT)

Cheetah Mobile (NYSE:CMCM) and Yext (NYSE:YEXT) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Institutional and Insider Ownership

0.4% of Cheetah Mobile shares are held by institutional investors. Comparatively, 71.0% of Yext shares are held by institutional investors. 17.1% of Cheetah Mobile shares are held by company insiders. Comparatively, 7.8% of Yext shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cheetah Mobile and Yext”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheetah Mobile	$1.12 billion	0.07	-$36.85 million	($1.51)	-1.60
Yext	$443.02 million	1.53	$37.87 million	$0.17	40.26

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cheetah Mobile and Yext, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheetah Mobile	1	0	0	0	1.00
Yext	0	5	0	0	2.00

Yext has a consensus price target of $6.33, suggesting a potential downside of 7.46%. Given Yext’s stronger consensus rating and higher possible upside, analysts clearly believe Yext is more favorable than Cheetah Mobile.

Profitability

This table compares Cheetah Mobile and Yext’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%
Yext	5.90%	43.23%	7.50%

Volatility & Risk

Cheetah Mobile has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Yext has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

Yext beats Cheetah Mobile on 10 of the 13 factors compared between the two stocks.

About Cheetah Mobile

Cheetah Mobile Inc. along with its subsidiaries, engages in provision of internet services, artificial intelligence, and other services in the People's Republic of China, Hong Kong, Japan, and internationally. The company's internet products include Duba Anti-virus, an internet security application to protect users against known and unknown security threats and malicious applications; and Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices. It also offers value-added products, such as PC and mobile products, as well as wallpaper, office optimization software, and others; E-Coupon vending robot, a delivery and reception robot, which includes marketing campaigns and services; and multi-cloud management platform and overseas advertising agency service. In addition, the company provides mobile advertising services; duba.com personal start page that aggregates online resources and provides users access to their online destinations, such as online shopping, video, online game, travel, and local information; artificial intelligence and other services; and premium membership services. It serves mobile advertising networks and partners, e-commerce companies, mobile application developers, and mobile game developers, as well as individual customers. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is based in Beijing, the People's Republic of China.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.