Cheetah Mobile (NYSE:CMCM) vs. Palantir Technologies (NASDAQ:PLTR) Head to Head Contrast

Palantir Technologies (NASDAQ:PLTR) and Cheetah Mobile (NYSE:CMCM) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Valuation & Earnings

This table compares Palantir Technologies and Cheetah Mobile”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palantir Technologies	$6.16 billion	71.44	$1.63 billion	$1.17	156.42
Cheetah Mobile	$164.51 million	0.48	-$36.85 million	($1.51)	-1.73

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

Institutional & Insider Ownership

45.7% of Palantir Technologies shares are held by institutional investors. Comparatively, 0.4% of Cheetah Mobile shares are held by institutional investors. 9.5% of Palantir Technologies shares are held by insiders. Comparatively, 17.1% of Cheetah Mobile shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Palantir Technologies and Cheetah Mobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palantir Technologies	49.01%	30.57%	25.64%
Cheetah Mobile	-28.11%	-8.54%	-3.22%

Analyst Ratings

This is a breakdown of recent ratings for Palantir Technologies and Cheetah Mobile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palantir Technologies	3	10	21	2	2.61
Cheetah Mobile	1	0	0	0	1.00

Palantir Technologies presently has a consensus target price of $195.33, indicating a potential upside of 6.73%. Given Palantir Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Palantir Technologies is more favorable than Cheetah Mobile.

Volatility and Risk

Palantir Technologies has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500.

Summary

Palantir Technologies beats Cheetah Mobile on 13 of the 15 factors compared between the two stocks.

About Palantir Technologies

Palantir Technologies, Inc. engages in the business of building and deploying software platforms that serve as the central operating systems for its customers. It operates under the Commercial and Government segments. The Commercial segment focuses on customers working in non-government industries. The Government segment is involved in providing services to customers that are the United States government and non-United States government agencies. The company was founded by Alexander Ceadmon Karp, Peter Andreas Thiel, Stephen Cohen, and Nathan Dale Gettings in 2003 and is headquartered in Denver, CO.

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.