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

Profitability

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

Net Margins Return on Equity Return on Assets
Sea Limited -90.49% N/A -39.28%
Cheetah Mobile 7.44% 11.03% 6.50%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sea Limited and Cheetah Mobile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sea Limited 0 1 5 0 2.83
Cheetah Mobile 0 3 0 0 2.00

Sea Limited presently has a consensus target price of $18.67, indicating a potential upside of 34.78%. Cheetah Mobile has a consensus target price of $11.17, indicating a potential downside of 10.09%. Given Sea Limited’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sea Limited is more favorable than Cheetah Mobile.

Earnings & Valuation

This table compares Sea Limited and Cheetah Mobile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sea Limited N/A N/A N/A N/A N/A
Cheetah Mobile $657.45 million 2.71 -$11.59 million $0.36 34.50

Sea Limited has higher revenue, but lower earnings than Cheetah Mobile.

Institutional and Insider Ownership

68.7% of Sea Limited shares are held by institutional investors. Comparatively, 7.1% of Cheetah Mobile shares are held by institutional investors. 0.2% of Sea Limited 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Cheetah Mobile beats Sea Limited on 5 of the 9 factors compared between the two stocks.

About Sea Limited

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.

About Cheetah Mobile

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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