Head to Head Analysis: MIND C.T.I. (NASDAQ:MNDO) and Hello Group (NASDAQ:MOMO)

Hello Group (NASDAQ:MOMO) and MIND C.T.I. (NASDAQ:MNDO) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Institutional & Insider Ownership

51.0% of Hello Group shares are held by institutional investors. Comparatively, 24.3% of MIND C.T.I. shares are held by institutional investors. 61.4% of Hello Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Hello Group has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, MIND C.T.I. has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hello Group and MIND C.T.I.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hello Group	$1.45 billion	0.56	$142.42 million	$0.89	7.58
MIND C.T.I.	$20.16 million	1.06	$4.63 million	$0.14	7.50

Hello Group has higher revenue and earnings than MIND C.T.I.. MIND C.T.I. is trading at a lower price-to-earnings ratio than Hello Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hello Group and MIND C.T.I.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hello Group	6.52%	10.89%	7.02%
MIND C.T.I.	15.58%	14.03%	10.25%

Analyst Recommendations

This is a summary of recent ratings and price targets for Hello Group and MIND C.T.I., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hello Group	1	2	1	0	2.00
MIND C.T.I.	1	0	0	0	1.00

Hello Group currently has a consensus target price of $10.00, indicating a potential upside of 48.15%. Given Hello Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Hello Group is more favorable than MIND C.T.I..

Summary

Hello Group beats MIND C.T.I. on 9 of the 14 factors compared between the two stocks.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.

About MIND C.T.I.

MIND C.T.I. Ltd., together with its subsidiaries, develops, markets, sells, and implements billing and customer care software solutions for communication service providers in the Americas, Europe, Israel, the Asia Pacific, and Africa. It operates in two segments, Billing and Related Services, and Messaging. The company offers billing and customer care solutions that support various services, such as voice, data, and content services, as well as prepaid, postpaid, and pay-in-advance payment models in a single platform. Its solutions also include a workflow engine to support the implementation of business processes, including subscriber registration, order management, trouble ticket, and debt collection; and a point of sale solution that covers dealer, store and cashier management, and sales cycle related activities. In addition, the company offers professional services comprising turnkey project delivery, customer support and maintenance, integration, customizations, and project management; and managed services, including day to day billing operational tasks. Further, it provides PhonEX ONE, a call management system that collects, records, and stores call information, which is used by organizations for telecom expense management, call accounting, traffic analysis, and fraud detection; and a mobile messaging platform. The company offers its products directly, as well as through distributors and resellers primarily to communication service providers, such as traditional wireline and wireless, voice over IP, broadband IP network operators, wireless internet service providers, LTE operators, cable operators, and mobile virtual network operators. MIND C.T.I. Ltd. was incorporated in 1995 and is headquartered in Yokneam Illit, Israel.