Analyzing Momo (NASDAQ:MOMO) & Where Food Comes From (NASDAQ:WFCF)

Momo (NASDAQ:MOMO) and Where Food Comes From (OTCMKTS:WFCF) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Momo and Where Food Comes From’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Momo 15.96% 23.10% 13.59%
Where Food Comes From 4.34% 7.51% 4.79%

Valuation and Earnings

This table compares Momo and Where Food Comes From’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Momo $1.95 billion 3.25 $409.54 million $1.96 16.24
Where Food Comes From $17.80 million 2.52 $800,000.00 N/A N/A

Momo has higher revenue and earnings than Where Food Comes From.

Institutional & Insider Ownership

59.5% of Momo shares are held by institutional investors. Comparatively, 0.3% of Where Food Comes From shares are held by institutional investors. 61.4% of Momo shares are held by company insiders. Comparatively, 53.6% of Where Food Comes From shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Momo and Where Food Comes From, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Momo 0 0 7 0 3.00
Where Food Comes From 0 0 0 0 N/A

Momo currently has a consensus price target of $41.40, suggesting a potential upside of 30.07%. Given Momo’s higher probable upside, analysts plainly believe Momo is more favorable than Where Food Comes From.

Volatility & Risk

Momo has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500. Comparatively, Where Food Comes From has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Summary

Momo beats Where Food Comes From on 11 of the 12 factors compared between the two stocks.

Momo Company Profile

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.

Where Food Comes From Company Profile

Where Food Comes From, Inc. provides verification and certification solutions for the agriculture, livestock, and food industries in the United States. It conducts on-site and desk audits to verify that claims made about livestock, crops, and other food products are accurate, as well as offers Where Food Comes From retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and Web-based information sharing and education. The company also sells hardware; and develops software and provides services related to sustainability measurement and benchmarking, traceability, verification, and certification to the food and agriculture industries. It serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is headquartered in Castle Rock, Colorado.

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