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

Analyst Ratings

This is a breakdown of current ratings and target prices for Cheetah Mobile and Qudian, as reported by MarketBeat.com.

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

Cheetah Mobile currently has a consensus price target of $11.67, indicating a potential upside of 5.39%. Qudian has a consensus price target of $21.00, indicating a potential upside of 62.41%. Given Qudian’s stronger consensus rating and higher possible upside, analysts plainly believe Qudian is more favorable than Cheetah Mobile.

Earnings & Valuation

This table compares Cheetah Mobile and Qudian’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheetah Mobile $657.45 million 2.42 -$11.59 million $0.36 30.75
Qudian $212.83 million 20.05 $85.06 million $0.88 14.69

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

Institutional & Insider Ownership

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

Profitability

This table compares Cheetah Mobile and Qudian’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%
Qudian 44.85% N/A 19.52%

Summary

Qudian beats Cheetah Mobile on 8 of the 12 factors compared between the two stocks.

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.

About Qudian

Qudian Inc. provides cash credit products, which provide funds in digital form, and merchandise credit products. The Company operates through an online platform and all the transaction are facilitated through mobile devices. Borrowers can apply for credit on their mobile phones and receive approval within a few seconds. Approved borrowers are then able to draw down on their cash credit with cash disbursed immediately into their Alipay accounts in digital form. It also offers merchandise credit products to finance borrowers’ direct purchase of merchandise offered on its marketplace on installment basis. Its marketplace connects consumers with merchandise suppliers. It offers 14 categories of merchandise from over 1,000 brands covering primarily consumer electronics, home appliances, watches and accessories, sports and outdoor merchandise and luggage.

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