Financial Review: MOGU (NYSE:MOGU) vs. CDK Global (NASDAQ:CDK)

CDK Global (NASDAQ:CDK) and MOGU (NYSE:MOGU) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for CDK Global and MOGU, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CDK Global 0 0 3 0 3.00
MOGU 0 0 1 0 3.00

CDK Global presently has a consensus price target of $64.75, indicating a potential upside of 20.42%. MOGU has a consensus price target of $2.80, indicating a potential upside of 61.85%. Given MOGU’s higher possible upside, analysts clearly believe MOGU is more favorable than CDK Global.

Insider & Institutional Ownership

88.6% of CDK Global shares are owned by institutional investors. Comparatively, 24.4% of MOGU shares are owned by institutional investors. 0.5% of CDK Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares CDK Global and MOGU’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CDK Global $1.96 billion 3.34 $207.50 million $3.05 17.63
MOGU $73.63 million 2.26 -$50.06 million N/A N/A

CDK Global has higher revenue and earnings than MOGU.

Volatility and Risk

CDK Global has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, MOGU has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares CDK Global and MOGU’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CDK Global 57.81% -116.27% 10.20%
MOGU -67.82% -4.65% -3.71%

Summary

CDK Global beats MOGU on 10 of the 12 factors compared between the two stocks.

About CDK Global

CDK Global, Inc., together with its subsidiaries, provides software and technology solutions for automotive retailers in the United States, Europe, Canada, and internationally. The company offers Dealer Management System (DMS), a portfolio of layered software applications and services for automotive retailers, original equipment manufacturers (OEMs), consumers, and other industry participants manage the acquisition, sale, financing, insuring, parts supply, and repair and maintenance of vehicles. It also provides solutions to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. In addition, the company offers professional services, custom programming, consulting, implementation, and training solutions, as well as customer support solutions. It serves approximately 30,000 retail locations and OEMs. CDK Global, Inc. has a partnership with Integrated Rental. The company was founded in 2014 and is headquartered in Hoffman Estates, Illinois.

About MOGU

MOGU Inc., through its subsidiaries, operates in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products provided by third party merchants, including beauty products and accessories. It also provides online marketing, commission, financing, and other services to merchants and users. The company offers its products through mobile apps, including flagship Mogujie app, mini-programs on Weixin, Weixin pay and QQ Wallet entryways, and Mogujie.com and Meilishuo.com websites to users. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. MOGU Inc. was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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