Analyzing Cheetah Mobile (CMCM) and The Competition

Cheetah Mobile (NYSE:CMCM) is one of 953 publicly-traded companies in the “Software” industry, but how does it contrast to its rivals? We will compare Cheetah Mobile to similar companies based on the strength of its profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Risk & Volatility

Cheetah Mobile has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Cheetah Mobile’s rivals have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

0.4% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cheetah Mobile and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheetah Mobile	1	0	0	0	1.00
Cheetah Mobile Competitors	5748	21526	44879	1497	2.57

As a group, “Software” companies have a potential upside of 28.85%. Given Cheetah Mobile’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Cheetah Mobile has less favorable growth aspects than its rivals.

Profitability

This table compares Cheetah Mobile and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheetah Mobile	-28.11%	-8.54%	-3.22%
Cheetah Mobile Competitors	-612.66%	21.01%	-8.93%

Earnings & Valuation

This table compares Cheetah Mobile and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cheetah Mobile	$1.12 billion	-$36.85 million	-1.53
Cheetah Mobile Competitors	$1.81 billion	$385.92 million	108.58

Cheetah Mobile’s rivals have higher revenue and earnings than Cheetah Mobile. Cheetah Mobile is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Cheetah Mobile rivals beat Cheetah Mobile on 10 of the 13 factors compared.

About Cheetah Mobile

Cheetah Mobile Inc. along with its subsidiaries, engages in provision of internet services, artificial intelligence, and other services in the People's Republic of China, Hong Kong, Japan, and internationally. The company's internet products include Duba Anti-virus, an internet security application to protect users against known and unknown security threats and malicious applications; and Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices. It also offers value-added products, such as PC and mobile products, as well as wallpaper, office optimization software, and others; E-Coupon vending robot, a delivery and reception robot, which includes marketing campaigns and services; and multi-cloud management platform and overseas advertising agency service. In addition, the company provides mobile advertising services; duba.com personal start page that aggregates online resources and provides users access to their online destinations, such as online shopping, video, online game, travel, and local information; artificial intelligence and other services; and premium membership services. It serves mobile advertising networks and partners, e-commerce companies, mobile application developers, and mobile game developers, as well as individual customers. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is based in Beijing, the People's Republic of China.