GrubHub (GRUB) versus Cheetah Mobile (CMCM) Financial Analysis
GrubHub (NYSE: GRUB) and Cheetah Mobile (NYSE:CMCM) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Valuation & Earnings
This table compares GrubHub and Cheetah Mobile’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GrubHub||$493.33 million||11.70||$49.55 million||$0.68||97.94|
|Cheetah Mobile||$657.45 million||2.69||-$11.59 million||$0.36||34.17|
GrubHub has higher earnings, but lower revenue than Cheetah Mobile. Cheetah Mobile is trading at a lower price-to-earnings ratio than GrubHub, indicating that it is currently the more affordable of the two stocks.
This table compares GrubHub and Cheetah Mobile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
7.2% of Cheetah Mobile shares are held by institutional investors. 2.4% of GrubHub shares are held by company insiders. Comparatively, 17.1% of Cheetah Mobile shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
GrubHub has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 3.22, suggesting that its share price is 222% more volatile than the S&P 500.
This is a summary of current ratings for GrubHub and Cheetah Mobile, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GrubHub presently has a consensus price target of $58.67, indicating a potential downside of 11.91%. Cheetah Mobile has a consensus price target of $11.67, indicating a potential downside of 5.15%. Given Cheetah Mobile’s higher possible upside, analysts clearly believe Cheetah Mobile is more favorable than GrubHub.
GrubHub Company Profile
Grubhub Inc. provides an online and mobile platform for restaurant pick-up and delivery orders. Its products include Grubhub and Seamless Mobile Applications and Mobile Website, Grubhub and Seamless Websites, Corporate Program, Delivery, Allmenus and MenuPages, Grubhub for Restaurants, and Restaurant Websites. As of December 31, 2016, the Company connected more than 50,000 local restaurants with diners in more than 1,100 cities across the United States. In certain markets, the Company also provides delivery services to restaurants on its platform that do not have their own delivery operations. The Company provides diners on the platform with a personalized platform that helps them search for local restaurants and then place an order from an Internet-connected device. It also provides diners with information about their orders and status. The Company also provides delivery services to restaurants on its platform that do not have their own delivery operations.
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.
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