Reviewing Momo (MOMO) and SEA (NYSE:SE)

Momo (NASDAQ: MOMO) and SEA (NYSE:SE) are both mid-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Valuation & Earnings

This table compares Momo and SEA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Momo $553.10 million 9.65 $145.25 million $1.47 18.28
SEA N/A N/A N/A N/A N/A

Momo has higher revenue and earnings than SEA.

Profitability

This table compares Momo and SEA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Momo 25.88% 39.60% 32.36%
SEA -141.10% N/A -48.73%

Insider and Institutional Ownership

39.8% of Momo shares are owned by institutional investors. Comparatively, 68.7% of SEA shares are owned by institutional investors. 0.2% of SEA 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 Ratings

This is a summary of recent recommendations for Momo and SEA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Momo 0 1 9 0 2.90
SEA 0 0 6 0 3.00

Momo presently has a consensus target price of $42.20, suggesting a potential upside of 57.05%. SEA has a consensus target price of $18.67, suggesting a potential upside of 31.18%. Given Momo’s higher probable upside, equities analysts clearly believe Momo is more favorable than SEA.

Summary

Momo beats SEA on 6 of the 9 factors compared between the two stocks.

Momo Company Profile

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.

SEA Company Profile

Sea Limited, formerly Garena Interactive Holding Limited, is an Internet company. The Company operates through three segments: digital entertainment, e-commerce and digital financial services. The Company has developed an integrated platform consisting of digital entertainment focused on online games, e-commerce, and digital financial services focused on e-wallet services. Its platforms include Garena, Shopee, and AirPay. Garena provides access to engaging mobile and personal computer (PC) online games, live streaming game play, as well as social features such as user chat and online forums. Shopee is an e-commerce marketplace where users come together to browse, shop and sell on-the-go, anytime, anywhere. AirPay App is the Company’s digital financial services business that provides e-wallet services to consumers through the AirPay App and to small businesses through the AirPay counter application.

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