Cheetah Mobile (NYSE: CMCM) and RumbleON (OTCMKTS:RMBL) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Valuation and Earnings

This table compares Cheetah Mobile and RumbleON’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheetah Mobile $657.45 million 2.67 -$11.59 million $0.40 30.53
RumbleON N/A N/A N/A ($0.58) -7.26

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

Risk & Volatility

Cheetah Mobile has a beta of 3.52, indicating that its share price is 252% more volatile than the S&P 500. Comparatively, RumbleON has a beta of -17.37, indicating that its share price is 1,837% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cheetah Mobile 7.44% 10.76% 6.35%
RumbleON N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cheetah Mobile and RumbleON, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheetah Mobile 0 3 0 0 2.00
RumbleON 0 0 2 0 3.00

Cheetah Mobile presently has a consensus price target of $11.67, indicating a potential downside of 4.45%. RumbleON has a consensus price target of $7.38, indicating a potential upside of 75.18%. Given RumbleON’s stronger consensus rating and higher possible upside, analysts plainly believe RumbleON is more favorable than Cheetah Mobile.

Insider & Institutional Ownership

7.2% of Cheetah Mobile shares are held by institutional investors. 17.1% of Cheetah Mobile shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Cheetah Mobile beats RumbleON on 9 of the 12 factors compared between the two stocks.

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.

RumbleON Company Profile

RumbleON, Inc. (RumbleON), formerly Smart Server Inc., is a development-stage company. The Company focuses on creating an e-commerce platform facilitating the ability of both consumers and dealers to Buy-Sell-Trade-Finance pre-owned recreation vehicles (RV). Serving both consumers and dealers, RumbleON makes such consumers or dealers a cash offer for the purchase of their vehicle. In addition, RumbleON offers an inventory of vehicles for sale on its Website and offers financing and associated products. RumbleON utilizes partner dealers in the acquisition of motorcycles, as well as to provide inspection, reconditioning and distribution services. Its product suite has modules supporting the motorcycle, RV, and marine and auto segments. As of December 31, 2016, the Company had not generated any revenue.

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