China Mobile Games & Entnmnt Grp (NASDAQ: CMGE) and SITO Mobile (NASDAQ:SITO) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

13.4% of SITO Mobile shares are owned by institutional investors. 6.5% of SITO Mobile shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares China Mobile Games & Entnmnt Grp and SITO Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Mobile Games & Entnmnt Grp 13.97% 13.39% 10.90%
SITO Mobile -20.97% -24.74% -13.11%

Valuation and Earnings

This table compares China Mobile Games & Entnmnt Grp and SITO Mobile’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Mobile Games & Entnmnt Grp N/A N/A N/A N/A N/A
SITO Mobile $33.46 million 2.85 -$3.05 million ($0.36) -12.08

China Mobile Games & Entnmnt Grp has higher revenue, but lower earnings than SITO Mobile.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for China Mobile Games & Entnmnt Grp and SITO Mobile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile Games & Entnmnt Grp 0 0 0 0 N/A
SITO Mobile 0 2 4 0 2.67

SITO Mobile has a consensus price target of $5.26, suggesting a potential upside of 20.92%. Given SITO Mobile’s higher possible upside, analysts plainly believe SITO Mobile is more favorable than China Mobile Games & Entnmnt Grp.

Summary

SITO Mobile beats China Mobile Games & Entnmnt Grp on 5 of the 8 factors compared between the two stocks.

China Mobile Games & Entnmnt Grp Company Profile

China Mobile Games and Entertainment Group Limited (CMGE) is a publisher and developer of mobile games in China. The Company’s games include social games, as well as single-player games which are available both individually and as part of game bundles. The Company provides game bundles to players through China Mobile. The Company’s games include Joyful Da Ying Jia, Jue Zhan Sha Cheng, Crisis Action and San Guo Weili Jiaqiang Ban, among others. The Company develops new mobile games and related updates and expansion packs. The Company’s Social games enable interaction among a numbers of players using different handsets or tablet computers. The Company’s Single-player games involve relatively simple rules and do not require time commitment from players.

SITO Mobile Company Profile

SITO Mobile, Ltd. operates a mobile location-based advertising platform serving businesses, advertisers and brands. The Company’s offerings include SITO Location-Based Advertising and SITO Mobile Messaging. SITO Location-Based Advertising delivers display advertisements and videos on behalf of advertisers, including various features, such as Geo-fencing, Verified walk-in, Behavioral Targeting, and Analytics and Optimization. Geo-fencing targets customers within a certain radius of location and uses technology to push coupons, advertisements and promotions to mobile applications. Verified Walk-in tracks foot-traffic to locations and which advertisements drive action. Behavioral Targeting tracks past behaviors over 30 to 90 day increments allowing for real-time campaign management. Analytics and Optimization is a culling and building measurement system. SITO Mobile Messaging is a platform for building and controlling programs, including messaging and customer incentive programs.

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