Financial Contrast: Cheetah Mobile (NYSE:CMCM) and BlackBerry (NYSE:BB)

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

Valuation & Earnings

This table compares BlackBerry and Cheetah Mobile”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackBerry	$549.10 million	9.81	$53.20 million	$0.12	76.71
Cheetah Mobile	$164.51 million	0.43	-$36.85 million	($1.51)	-1.54

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

Analyst Recommendations

This is a summary of current ratings and price targets for BlackBerry and Cheetah Mobile, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackBerry	0	7	2	0	2.22
Cheetah Mobile	1	0	0	0	1.00

BlackBerry presently has a consensus price target of $9.86, indicating a potential upside of 7.08%. Given BlackBerry’s stronger consensus rating and higher probable upside, research analysts plainly believe BlackBerry is more favorable than Cheetah Mobile.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlackBerry	13.09%	13.71%	8.36%
Cheetah Mobile	-28.11%	-8.54%	-3.22%

Risk and Volatility

BlackBerry has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Institutional & Insider Ownership

54.5% of BlackBerry shares are held by institutional investors. Comparatively, 0.4% of Cheetah Mobile shares are held by institutional investors. 0.5% of BlackBerry 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

BlackBerry beats Cheetah Mobile on 12 of the 13 factors compared between the two stocks.

About BlackBerry

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions. It also provides BlackBerry Technology Solutions (BTS); BlackBerry Certicom, a patented elliptic curve cryptography, which provides device security, anti-counterfeiting and product authentication solutions; BlackBerry Radar offers monitoring and telematics solutions; BlackBerry Professional; and cyber security consulting services. In addition, the company is involved in the patent licensing and legacy service access fees business. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.

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.