Telenav (NASDAQ: TNAV) and Cheetah Mobile (NYSE:CMCM) are both small-cap mobile application software companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Telenav -32.94% -41.16% -19.25%
Cheetah Mobile 7.44% 10.76% 6.35%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telenav 0 0 3 0 3.00
Cheetah Mobile 0 3 0 0 2.00

Telenav currently has a consensus target price of $12.00, indicating a potential upside of 160.87%. Cheetah Mobile has a consensus target price of $11.67, indicating a potential upside of 1.71%. Given Telenav’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Telenav is more favorable than Cheetah Mobile.

Institutional & Insider Ownership

53.8% of Telenav shares are owned by institutional investors. Comparatively, 7.2% of Cheetah Mobile shares are owned by institutional investors. 24.7% of Telenav shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Telenav has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 3.24, suggesting that its stock price is 224% more volatile than the S&P 500.

Valuation & Earnings

This table compares Telenav and Cheetah Mobile’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telenav $169.58 million 1.20 -$47.26 million ($1.24) -3.71
Cheetah Mobile $657.45 million 2.51 -$11.59 million $0.38 30.18

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

Summary

Cheetah Mobile beats Telenav on 8 of the 13 factors compared between the two stocks.

Telenav Company Profile

TeleNav, Inc. (Telenav) is a provider of location-based platform services. The Company’s services consist of its automotive and mobile navigation platform and its advertising delivery platform. The Company operates through three segments: automotive, advertising and mobile navigation. The automotive segment provides its map and navigation platform to auto manufacturers and original equipment manufacturers (OEMs) for distribution with their vehicles. The advertising segment provides interactive mobile advertisements on behalf of its advertising clients to consumers based on the location of the user and other targeting capabilities. The mobile navigation segment provides its map and navigation platform to end users through mobile devices. The Company’s auto and mobile navigation platform allows it to deliver location-based services to auto manufacturers, developers and end users through various distribution channels, including wireless carriers.

Cheetah Mobile Company Profile

Cheetah Mobile Inc. is a holding company. The Company and its consolidated subsidiaries, variable interest entities (VIEs) and a VIE’s subsidiary are engaged in the provision of online marketing services, Internet value-added services, and Internet security services and others. The Company operates a platform that offers mobile and personal computer (PC) applications for its users and global content promotional channels for its customers, both of which are powered by its cloud-based data analytics engines. For its users, its diversified suite of applications optimizes mobile and PC Internet system performance, and provides real time protection against known and unknown security threats. Its data analytics engines perform real time analysis of mobile applications, program files and Websites on their devices for behavior that may impair system performance or impose security risks.

Receive News & Ratings for Telenav Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Telenav Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.