Critical Comparison: Cheetah Mobile (NYSE:CMCM) & Cellebrite DI (NASDAQ:CLBT)

Cellebrite DI (NASDAQ:CLBT) and Cheetah Mobile (NYSE:CMCM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Valuation & Earnings

This table compares Cellebrite DI and Cheetah Mobile”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cellebrite DI	$401.20 million	11.47	-$283.01 million	$0.31	61.97
Cheetah Mobile	$110.54 million	1.85	-$84.60 million	($2.02)	-3.34

Cheetah Mobile has lower revenue, but higher earnings than Cellebrite DI. Cheetah Mobile is trading at a lower price-to-earnings ratio than Cellebrite DI, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cellebrite DI and Cheetah Mobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cellebrite DI	16.74%	20.81%	10.71%
Cheetah Mobile	-39.76%	-12.54%	-4.85%

Insider & Institutional Ownership

45.9% of Cellebrite DI shares are owned by institutional investors. Comparatively, 0.4% of Cheetah Mobile shares are owned by institutional investors. 5.7% of Cellebrite DI shares are owned by company insiders. Comparatively, 17.1% of Cheetah Mobile shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Cellebrite DI and Cheetah Mobile, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cellebrite DI	1	0	4	0	2.60
Cheetah Mobile	1	0	0	0	1.00

Cellebrite DI presently has a consensus price target of $24.00, suggesting a potential upside of 24.93%. Given Cellebrite DI’s stronger consensus rating and higher possible upside, analysts clearly believe Cellebrite DI is more favorable than Cheetah Mobile.

Volatility and Risk

Cellebrite DI has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Summary

Cellebrite DI beats Cheetah Mobile on 11 of the 14 factors compared between the two stocks.

About Cellebrite DI

Cellebrite DI Ltd. develops solutions for legally sanctioned investigations in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company's DI suite of solutions allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations used in various cases, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, cryptocurrency, and intellectual property theft. It provides Inseyets, a digital forensics software that collects and reviews digital evidence from various digital sources when conducting legally sanctioned investigations. The company's digital forensics software also offers data extraction, decoding capabilities, workflows, and automation capabilities. In addition, it provides Cellebrite Pathfinder, which reduces the time spent manually reviewing digital evidence by automating data analysis and visualization; Smart Search, an open source intelligence tool that automates the collection and review of publicly available online data; and Guardian, a case and evidence management solution. Further, the company offers digital forensic software for enterprises and service providers, including Inseyets for Enterprise, Endpoint Inspector, and Mobile Now; and professional services, such as training and certification services, and other services. It serves federal and state and local agencies. The company was incorporated in 1999 and is headquartered in Petah Tikva, Israel.

About Cheetah Mobile

Cheetah Mobile Inc. along with its subsidiaries, engages in provision of internet services, artificial intelligence, and other services in the People's Republic of China, Hong Kong, Japan, and internationally. The company's internet products include Duba Anti-virus, an internet security application to protect users against known and unknown security threats and malicious applications; and Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices. It also offers value-added products, such as PC and mobile products, as well as wallpaper, office optimization software, and others; E-Coupon vending robot, a delivery and reception robot, which includes marketing campaigns and services; and multi-cloud management platform and overseas advertising agency service. In addition, the company provides mobile advertising services; duba.com personal start page that aggregates online resources and provides users access to their online destinations, such as online shopping, video, online game, travel, and local information; artificial intelligence and other services; and premium membership services. It serves mobile advertising networks and partners, e-commerce companies, mobile application developers, and mobile game developers, as well as individual customers. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is based in Beijing, the People's Republic of China.