Analyzing Cheetah Mobile (CMCM) and Black Knight (BKI)


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

Volatility and Risk

Cheetah Mobile has a beta of 2.44, indicating that its stock price is 144% more volatile than the S&P 500. Comparatively, Black Knight has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheetah Mobile $764.61 million 1.16 $207.21 million N/A N/A
Black Knight $1.05 billion 6.45 $182.30 million $1.32 34.41

Cheetah Mobile has higher earnings, but lower revenue than Black Knight.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cheetah Mobile and Black Knight, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cheetah Mobile 1 1 1 0 2.00
Black Knight 0 1 9 0 2.90

Cheetah Mobile presently has a consensus target price of $13.00, suggesting a potential upside of 111.04%. Black Knight has a consensus target price of $55.16, suggesting a potential upside of 21.44%. Given Cheetah Mobile’s higher possible upside, equities research analysts clearly believe Cheetah Mobile is more favorable than Black Knight.

Insider and Institutional Ownership

5.4% of Cheetah Mobile shares are owned by institutional investors. Comparatively, 86.2% of Black Knight shares are owned by institutional investors. 17.1% of Cheetah Mobile shares are owned by company insiders. Comparatively, 14.4% of Black Knight shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Cheetah Mobile 29.78% 31.36% 20.25%
Black Knight 24.90% 13.86% 6.41%

Summary

Cheetah Mobile beats Black Knight on 7 of the 13 factors compared between the two stocks.

About Cheetah Mobile

Cheetah Mobile Inc. operates as a mobile Internet company worldwide. The company’s utility products include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices; Security Master, an anti-virus and security application for mobile devices; Battery Doctor, a power optimization tool for mobile devices; Cheetah Browser, a Web browser for PCs and mobile devices; CM Browser, a mobile browser to protect users from malicious threats; and CM Launcher, which provides personalized experience in using smart phones. Its utility products also comprise Cheetah Keyboard, an artificial intelligence (AI)-enabled application; Photo Grid, a photo collage application for mobile devices; CM Locker, a lock screen with notifications and security; Duba Anti-virus, an Internet security application for PC and mobile devices; and SafeWallet, a mobile digital wallet. In addition, the company offers Live.me, a live video streaming application; and Cheez, an interactive short video application. Further, it provides mobile games comprising Piano Tiles 2, Rolling Sky, Dancing Line, Arrow.io, Tap Tap Fish, and Tap Tap Dash; and Cheetah Voicepod, an AI-based smart speaker. Additionally, the company offers mobile advertising platform; duba.com personal start page that aggregates online resources and provides users access to their online destinations; and cloud-based data analytics engines, as well as mobile advertising, and Web and mobile games publisher services. It serves direct advertisers that include mobile application developers, mobile game developers, and e-commerce companies, as well as search engines and partnering mobile advertising networks. 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 headquartered in Beijing, People’s Republic of China.

About Black Knight

Black Knight, Inc. engages in the provision of software, data and analytics solutions. It operates through the Software Solutions, and Data and Analytics. The Software Solutions segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. The Data and Analytics segment refers to the data and analytics solutions to the mortgage, real estate and capital markets verticals. The company was founded on February 3, 2017 and is headquartered in Jacksonville, FL.



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