CommScope (NASDAQ:COMM) versus Cheer (NASDAQ:CHR) Financial Analysis

CommScope (NASDAQ:COMM) and Cheer (NASDAQ:CHR) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Insider and Institutional Ownership

88.0% of CommScope shares are owned by institutional investors. Comparatively, 18.5% of Cheer shares are owned by institutional investors. 2.6% of CommScope shares are owned by insiders. Comparatively, 41.7% of Cheer shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for CommScope and Cheer, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CommScope	2	3	0	0	1.60
Cheer	0	0	0	0	0.00

CommScope presently has a consensus price target of $4.88, indicating a potential downside of 40.48%. Given CommScope’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CommScope is more favorable than Cheer.

Profitability

This table compares CommScope and Cheer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CommScope	16.89%	-4.51%	1.68%
Cheer	N/A	N/A	N/A

Volatility & Risk

CommScope has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, Cheer has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares CommScope and Cheer”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CommScope	$4.21 billion	0.42	-$315.50 million	$2.73	3.00
Cheer	$147.20 million	0.12	$25.97 million	N/A	N/A

Cheer has lower revenue, but higher earnings than CommScope.

Summary

CommScope beats Cheer on 8 of the 11 factors compared between the two stocks.

About CommScope

CommScope Holding Company, Inc. provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates through Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments. The CCS segment provides network solutions for indoor and outdoor network applications; and fiber optic and copper connectivity and cable solutions for use in telecommunications, cable television, residential broadband networks, data centers and business enterprises. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, wireless Spectrum management business and Comsearch products. The NICS segment offers indoor and outdoor Wi-Fi and long-term evolution (LTE) access points, access and aggregation switches; an Internet of Things suite, on-premises and cloud-based control and management systems; and software and software-as-a-service applications. The ANS segment offers cable modem termination systems, video infrastructure, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network. It offers its products and services through independent distributors, specialized resellers and distributors, wireless and wireline operators, original equipment manufacturers, and system integrators, as well as directly to customers. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is based in Claremont, North Carolina.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People’s Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People’s Republic of China.