Reviewing GitLab (NASDAQ:GTLB) and Kingsoft Cloud (NASDAQ:KC)

GitLab (NASDAQ:GTLBGet Rating) and Kingsoft Cloud (NASDAQ:KCGet Rating) 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, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for GitLab and Kingsoft Cloud, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GitLab 0 1 9 0 2.90
Kingsoft Cloud 1 3 2 0 2.17

GitLab presently has a consensus price target of $95.67, suggesting a potential upside of 89.59%. Kingsoft Cloud has a consensus price target of $36.50, suggesting a potential upside of 735.24%. Given Kingsoft Cloud’s higher probable upside, analysts plainly believe Kingsoft Cloud is more favorable than GitLab.

Profitability

This table compares GitLab and Kingsoft Cloud’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GitLab N/A N/A N/A
Kingsoft Cloud -17.53% -16.12% -9.71%

Institutional & Insider Ownership

7.6% of GitLab shares are held by institutional investors. Comparatively, 36.8% of Kingsoft Cloud shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares GitLab and Kingsoft Cloud’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GitLab $252.65 million 28.92 -$155.14 million N/A N/A
Kingsoft Cloud $1.42 billion 0.74 -$249.30 million ($1.06) -4.12

GitLab has higher earnings, but lower revenue than Kingsoft Cloud.

Summary

GitLab beats Kingsoft Cloud on 7 of the 10 factors compared between the two stocks.

About GitLab (Get Rating)

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. The company offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. It helps organizations to plan, build, secure, and deploy software to drive business outcomes. The company also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. The company was founded in 2011 and is headquartered in San Francisco, California.

About Kingsoft Cloud (Get Rating)

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations in China. The company offers public cloud services to customers in various verticals, including game, video, AI, e-commerce, education, and mobile internet; enterprise cloud services to customers in financial service, public service, and healthcare business, and others. It also provides IoT-smart living solutions. The company was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

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