Head-To-Head Comparison: Cheetah Mobile (NYSE:CMCM) versus Salesforce (NYSE:CRM)

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

Institutional and Insider Ownership

0.4% of Cheetah Mobile shares are held by institutional investors. Comparatively, 80.4% of Salesforce shares are held by institutional investors. 17.1% of Cheetah Mobile shares are held by company insiders. Comparatively, 3.5% of Salesforce 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 Salesforce”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	0.46	-$36.85 million	($1.51)	-1.64
Salesforce	$41.52 billion	4.54	$7.46 billion	$10.97	20.87

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

Profitability

This table compares Cheetah Mobile and Salesforce’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%
Salesforce	21.99%	24.90%	11.27%

Analyst Ratings

This is a breakdown of current recommendations for Cheetah Mobile and Salesforce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheetah Mobile	1	0	0	0	1.00
Salesforce	3	14	30	3	2.66

Salesforce has a consensus target price of $275.14, indicating a potential upside of 20.18%. Given Salesforce’s stronger consensus rating and higher probable upside, analysts plainly believe Salesforce is more favorable than Cheetah Mobile.

Volatility & Risk

Cheetah Mobile has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, Salesforce has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Summary

Salesforce beats Cheetah Mobile on 13 of the 15 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 Salesforce

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale. In addition, its platform offering comprise a flexible platform that enables companies of various sizes, locations, and industries to build business workflow and apps with customer; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, an intelligent productivity platform. The company's marketing services enables companies to plan, personalize, automate, and optimize customer marketing journey, connecting interaction, and connected products; and commerce services, which empowers shopping experience across various customer touchpoint, such as mobile, web, social, and stores and provides click-to-code tools that offers customers to build and deploy solutions. Further, its analytics offering includes Tableau, an end-to-end analytics solution for range of enterprise use cases and intelligent analytics with AI models, spot trends, predict outcomes, creates summaries, timely recommendations, and take action from any device; and integration service including MuleSoft, which provides building blocks to deliver end-to-end and connected experiences. Additionally, the company provides data cloud, a hyperscale data engine native to Salesforce; vertical services to meet the needs of customers in industries, such as financial services, healthcare and life sciences, manufacturing and automotive and government; and offers salesforce starter for small and medium-sized businesses. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.