Gridsum (NASDAQ:GSUM) and Momo (NASDAQ:MOMO) Financial Review

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

Profitability

This table compares Gridsum and Momo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gridsum N/A N/A N/A
Momo 15.96% 23.10% 13.59%

Valuation & Earnings

This table compares Gridsum and Momo’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gridsum $62.72 million 1.17 -$75.82 million N/A N/A
Momo $1.95 billion 3.66 $409.54 million $1.96 18.27

Momo has higher revenue and earnings than Gridsum.

Volatility and Risk

Gridsum has a beta of 3.22, suggesting that its stock price is 222% more volatile than the S&P 500. Comparatively, Momo has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.

Institutional & Insider Ownership

30.0% of Gridsum shares are held by institutional investors. Comparatively, 58.4% of Momo shares are held by institutional investors. 61.4% of Momo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Gridsum and Momo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gridsum 0 0 0 0 N/A
Momo 0 0 8 0 3.00

Momo has a consensus price target of $44.33, suggesting a potential upside of 23.84%. Given Momo’s higher possible upside, analysts plainly believe Momo is more favorable than Gridsum.

Summary

Momo beats Gridsum on 10 of the 11 factors compared between the two stocks.

About Gridsum

Gridsum Holding Inc. provides data analysis software for enterprises and government agencies in China. Its proprietary distributed data architecture allows its customers to collect and analyze information; and Gridsum Big Data platform and Gridsum Prophet performs multi-dimensional correlation analysis and analyzes complex real-time events. The company offers Web Dissector to analyze customer Websites by monitoring and analyzing key performance indicators; Mobile Dissector to understand mobile app user activity; SEM Dissector for search engine marketing; SEO Dissector, a search engine optimization tool; Ad Dissector, an advertisement performance monitoring and optimization product; Contribution Dissector to track and analyze user behavior from original access to ultimate conversion; Audience Dissector, an audience analysis product; and Recommendation Engine, a data driven content recommendation solution. It also provides Government Web Dissector, a digital intelligence solution; Government Website Group Integrated Management Platform, an integrated management platform; Streaming Dissector, a real-time viewership analysis for digital online video; Video Dissector, an online video content analytics tool; TV Dissector, an analytics tool; Rating Plus, a television viewing data analytics tool; and Media Dissector, a mass, social, and user-generated content media monitoring and analytics tool. In addition, the company offers Law Dissector, a search and statistical analysis tool; Smart Push, a legal research tool; voice recognition and transcription system; Information Dissector, an insightful analytical system; Social Listening, a cloud-based social listening solution; Gridsum Dashboard, a data visualization tool; and Gridsum Report Center, an automated report generation and distribution tool. Further, it develops new media analytics and information discovery solutions to address customer needs. The company was founded in 2005 and is headquartered in Beijing, China.

About Momo

Momo Inc. operates a mobile-based social and entertainment platform in the People's Republic of China. The company operates Momo platform that includes its Momo mobile application and various related features, functionalities, tools, and services to users, customers, and platform partners. It offers Momo mobile application that enables users to establish and expand their social relationships based on locations; interests; and recreational activities, including live talent shows, short videos, social games, and other video- and audio-based interactive experiences. The company also operates Tantan, a social and dating app to help its users to find and establish romantic connections, as well as to meet interesting people primarily for young mobile Internet users. The company was formerly known as Momo Technology Company Limited and changed its name to Momo Inc. in July 2014. Momo Inc. was founded in 2011 and is headquartered in Beijing, the People's Republic of China.

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