Cheetah Mobile (NYSE:CMCM) & Xperi (NASDAQ:XPER) Head-To-Head Comparison

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

Analyst Ratings

This is a summary of current recommendations and price targets for Cheetah Mobile and Xperi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheetah Mobile	0	0	0	0	0.00
Xperi	0	0	2	1	3.33

Xperi has a consensus target price of $19.00, suggesting a potential upside of 137.17%. Given Xperi’s stronger consensus rating and higher probable upside, analysts plainly believe Xperi is more favorable than Cheetah Mobile.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheetah Mobile	$806.88 million	0.15	-$84.92 million	($2.86)	-1.42
Xperi	$488.88 million	0.75	-$136.61 million	($0.43)	-18.63

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

Volatility and Risk

Cheetah Mobile has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Institutional and Insider Ownership

0.4% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 94.3% of Xperi shares are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by insiders. Comparatively, 2.1% of Xperi 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheetah Mobile	N/A	N/A	N/A
Xperi	-16.72%	-7.03%	-4.14%

Summary

Cheetah Mobile beats Xperi on 8 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 Xperi

Xperi Inc. operates as a consumer and entertainment technology company worldwide. It offers Pay-TV solutions, including UX solutions that allows service providers to customize elements of the interactive program guide for their customers and to upgrade the programming features and services; IPTV, a cloud-based solution that supports various services and applications, such as TV programming, broadband OTT video content, digital music, photos, and other media experiences; managed IPTV service; video metadata and services; managed IPTV Service, a customizable, cloud-enabled, and end-to-end streaming video solution that enables operators to quickly launch a branded, fully compliant, full-featured Pay-TV service; metadata libraries comprising television, sports, movies, digital-first, celebrities, books, and video games; personalized content discovery, natural language voice, and insights; and TiVo DVR subscriptions, as well as technical support service. It also provides consumer electronics solutions, such as home and mobile audio solutions, and silicon and software solutions for edge inference; connected car solutions, including HD Radio and DTS AutoStage; and Media Platform that provides Vewd middleware solutions, TiVo OS, TiVo Stream 4K, connected TVs, and connected cars that leverage the TiVo OS, as well as advertising solutions. The company was incorporated in 2019 and is headquartered in San Jose, California.