Red Violet (NASDAQ:RDVT) and Cheetah Mobile (NYSE:CMCM) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Red Violet has a beta of -0.22, meaning that its stock price is 122% less volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500.
This is a breakdown of current ratings for Red Violet and Cheetah Mobile, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cheetah Mobile has a consensus price target of $3.30, indicating a potential downside of 14.95%. Given Cheetah Mobile’s higher probable upside, analysts plainly believe Cheetah Mobile is more favorable than Red Violet.
Valuation and Earnings
This table compares Red Violet and Cheetah Mobile’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Red Violet||$16.30 million||7.89||-$6.87 million||N/A||N/A|
|Cheetah Mobile||$724.56 million||0.77||$169.72 million||N/A||N/A|
Cheetah Mobile has higher revenue and earnings than Red Violet.
This table compares Red Violet and Cheetah Mobile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
14.2% of Red Violet shares are owned by institutional investors. Comparatively, 4.7% of Cheetah Mobile shares are owned by institutional investors. 4.3% of Red Violet 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Cheetah Mobile beats Red Violet on 8 of the 10 factors compared between the two stocks.
Red Violet Company Profile
Red Violet, Inc., a software and services company, specializes in big data analysis providing cloud-based mission-critical information solutions to enterprises in various industries in the United States. Its proprietary platform includes CORE, a cloud-based technology platform, which serves various industries within risk management. The company serves various industries, including law enforcement, government, financial services, insurance, and corporate risk for identity verification, risk assessment, fraud detection, and compliance. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective clients, distributors, resellers, strategic partners, and installed base of current clients, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.
Cheetah Mobile Company Profile
Cheetah Mobile Inc. operates as a mobile Internet company worldwide. The company's utility products include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices; Security Master, an anti-virus and security application for mobile devices; Battery Doctor, a power optimization tool for mobile devices; Cheetah Browser, a Web browser for PCs and mobile devices; CM Browser, a mobile browser to protect users from malicious threats; and CM Launcher, which provides personalized experience in using smart phones. Its utility products also comprise Cheetah Keyboard, an artificial intelligence (AI)-enabled application; Photo Grid, a photo collage application for mobile devices; CM Locker, a lock screen with notifications and security; Duba Anti-virus, an Internet security application for PC and mobile devices; and SafeWallet, a mobile digital wallet. In addition, the company offers Live.me, a live video streaming application; and Cheez, an interactive short video application. Further, it provides mobile games comprising Piano Tiles 2, Rolling Sky, Dancing Line, Arrow.io, Tap Tap Fish, and Tap Tap Dash; and Cheetah Voicepod, an AI-based smart speaker. Additionally, the company offers mobile advertising platform; duba.com personal start page that aggregates online resources and provides users access to their online destinations; and cloud-based data analytics engines, as well as mobile advertising, and Web and mobile games publisher services. It serves direct advertisers that include mobile application developers, mobile game developers, and e-commerce companies, as well as search engines and partnering mobile advertising networks. 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 headquartered in Beijing, People's Republic of China.
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