Flywire (NASDAQ:FLYW) and Kingsoft Cloud (NASDAQ:KC) Head-To-Head Comparison

Kingsoft Cloud (NASDAQ:KC) and Flywire (NASDAQ:FLYW) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Kingsoft Cloud and Flywire, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft Cloud	1	1	4	1	2.71
Flywire	2	9	5	0	2.19

Kingsoft Cloud currently has a consensus target price of $17.27, indicating a potential upside of 13.15%. Flywire has a consensus target price of $13.54, indicating a potential downside of 0.06%. Given Kingsoft Cloud’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Kingsoft Cloud is more favorable than Flywire.

Insider and Institutional Ownership

13.4% of Kingsoft Cloud shares are owned by institutional investors. Comparatively, 95.9% of Flywire shares are owned by institutional investors. 14.2% of Kingsoft Cloud shares are owned by company insiders. Comparatively, 4.4% of Flywire shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kingsoft Cloud	-24.26%	-18.02%	-5.37%
Flywire	1.27%	1.94%	1.38%

Volatility & Risk

Kingsoft Cloud has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, Flywire has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kingsoft Cloud and Flywire”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft Cloud	$1.07 billion	4.00	-$269.43 million	($1.14)	-13.39
Flywire	$492.14 million	3.37	$2.90 million	$0.05	271.00

Flywire has lower revenue, but higher earnings than Kingsoft Cloud. Kingsoft Cloud is trading at a lower price-to-earnings ratio than Flywire, indicating that it is currently the more affordable of the two stocks.

Summary

Flywire beats Kingsoft Cloud on 8 of the 15 factors compared between the two stocks.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.