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

Profitability

This table compares Cheetah Mobile and SEA’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%
SEA -90.49% N/A -39.28%

Valuation and Earnings

This table compares Cheetah Mobile and SEA’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 2.69 -$11.59 million $0.36 34.17
SEA N/A N/A N/A N/A N/A

SEA has lower revenue, but higher earnings than Cheetah Mobile.

Institutional & Insider Ownership

7.2% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 68.7% of SEA shares are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by insiders. Comparatively, 0.2% of SEA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Cheetah Mobile and SEA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheetah Mobile 0 3 0 0 2.00
SEA 0 0 6 0 3.00

Cheetah Mobile currently has a consensus price target of $11.67, indicating a potential downside of 5.15%. SEA has a consensus price target of $18.67, indicating a potential upside of 50.17%. Given SEA’s stronger consensus rating and higher possible upside, analysts plainly believe SEA is more favorable than Cheetah Mobile.

Summary

Cheetah Mobile beats SEA on 5 of the 9 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.

SEA Company Profile

Sea Limited, formerly Garena Interactive Holding Limited, is a Singapore-based Internet and mobile platform company. The Company is a platform provider for online personal computer (PC) and mobile digital content, e-commerce and payments across Asia. The Company offers Garena+, an online platform for people to meet, chat and play games with each other. Its digital content offers Garena, which is a game and social platform for gamers to interact, discover, download and play PC and mobile games. PC games on Garena Platform include Point Blank, Path of Exile, Mstar Online, League of Legends, Heroes of Newerth, Alliance of Valiant Arms, Mabinogi Heroes and Lost Saga. Mobile Games on Garena Platform include Headshot and Thunder Strike. Its ESports Events include Garena Premier League, Garena Carnival, Garena Cyber Games, Garena Star League and League of Legends Master Series. Its e-commerce offers Shopee, a mobile marketplace, where users can browse, shop and sell their products.

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