Analyzing Momo (MOMO) and China Mobile Games & Entnmnt Grp (CMGE)

Momo (NASDAQ: MOMO) and China Mobile Games & Entnmnt Grp (NASDAQ:CMGE) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Profitability

This table compares Momo and China Mobile Games & Entnmnt Grp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Momo 27.00% 38.94% 32.00%
China Mobile Games & Entnmnt Grp 13.97% 13.39% 10.90%

Earnings and Valuation

This table compares Momo and China Mobile Games & Entnmnt Grp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Momo $553.10 million 9.97 $145.25 million $1.29 21.98
China Mobile Games & Entnmnt Grp N/A N/A N/A $1.22 N/A

Momo has higher revenue and earnings than China Mobile Games & Entnmnt Grp. China Mobile Games & Entnmnt Grp is trading at a lower price-to-earnings ratio than Momo, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

39.9% of Momo shares are owned by institutional investors. 61.4% of Momo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Momo and China Mobile Games & Entnmnt Grp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Momo 0 1 11 0 2.92
China Mobile Games & Entnmnt Grp 0 0 0 0 N/A

Momo currently has a consensus price target of $44.08, suggesting a potential upside of 55.50%.

Summary

Momo beats China Mobile Games & Entnmnt Grp on 8 of the 8 factors compared between the two stocks.

About Momo

Momo Inc. is a holding company. The Company operates Momo, a mobile-based social networking platform. The Company’s Momo platform includes its Momo mobile application and a range of related features, functionalities, tools and services that it provides to users, customers and platform partners. Momo users can maintain their relationships through its private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on its platform. It also offers live music and entertainment broadcasts on its Momo platform. The Momo mobile application, which is available on android, iPhone operating system (iOS) and Windows platforms, enables users to establish social relationships based on locations and interests. Momo offers a personal way for users to discover people nearby, and the Company facilitates the connecting, communicating, interacting, and content sharing with others.

About China Mobile Games & Entnmnt Grp

China Mobile Games and Entertainment Group Limited (CMGE) is a publisher and developer of mobile games in China. The Company’s games include social games, as well as single-player games which are available both individually and as part of game bundles. The Company provides game bundles to players through China Mobile. The Company’s games include Joyful Da Ying Jia, Jue Zhan Sha Cheng, Crisis Action and San Guo Weili Jiaqiang Ban, among others. The Company develops new mobile games and related updates and expansion packs. The Company’s Social games enable interaction among a numbers of players using different handsets or tablet computers. The Company’s Single-player games involve relatively simple rules and do not require time commitment from players.

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