Cheetah Mobile Inc. (NYSE:CMCM) and CDK Global Inc. (NASDAQ:CDK) are two firms in the Application Software that compete against each other. Below is a comparison of their institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cheetah Mobile Inc. N/A 0.00 N/A 1.51 4.52
CDK Global Inc. 2.26B 2.79 389.80M 2.75 17.48

Table 1 shows top-line revenue, earnings per share and valuation of the two companies. The company with the lower P/E out of the two companies is considered for more affordable of the two firms currently. Cheetah Mobile Inc.’s current P/E ratio is lower than that of CDK Global Inc., which means that it is the affordable of the two.

Profitability

Table 2 provides Cheetah Mobile Inc. and CDK Global Inc.’s return on equity, net margins and return on assets.

Net Margins Return on Equity Return on Assets
Cheetah Mobile Inc. 0.00% 32.7% 20.2%
CDK Global Inc. 17.25% -139.1% 13.6%

Volatility & Risk

A beta of 2.85 shows that Cheetah Mobile Inc. is 185.00% more volatile than Standard and Poor’s 500. Competitively, CDK Global Inc.’s 24.00% volatility makes it less volatile than Standard and Poor’s 500, because of the 0.76 beta.

Liquidity

The Current Ratio and a Quick Ratio of Cheetah Mobile Inc. are 3 and 3. Competitively, CDK Global Inc. has 1.6 and 1.6 for Current and Quick Ratio. Cheetah Mobile Inc.’s better ability to pay short and long-term obligations than CDK Global Inc.

Dividends

The dividend yield for CDK Global Inc. is 1.23% while its annual dividend payout is $0.6 per share. No dividend is paid out by Cheetah Mobile Inc.

Analyst Ratings

Cheetah Mobile Inc. and CDK Global Inc. Recommendations and Ratings are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Cheetah Mobile Inc. 0 0 0 0.00
CDK Global Inc. 0 2 0 2.00

Competitively CDK Global Inc. has an average price target of $68, with potential upside of 38.89%.

Insider and Institutional Ownership

Cheetah Mobile Inc. and CDK Global Inc. has shares held by institutional investors as follows: 21.5% and 82.5%. 16.14% are Cheetah Mobile Inc.’s share held by insiders. On the other hand, insiders held about 0.4% of CDK Global Inc.’s shares.

Performance

In this table we provide the Week, Month, Quarter, Half Year, Year and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Cheetah Mobile Inc. 7.4% -25.87% -26.43% -41.66% -40.07% -43.54%
CDK Global Inc. -4.74% -9.33% -21.37% -26.24% -31.37% -32.65%

For the past year CDK Global Inc. has weaker performance than Cheetah Mobile Inc.

Summary

CDK Global Inc. beats Cheetah Mobile Inc. on 10 of the 13 factors.

Cheetah Mobile Inc. operates a platform that offers mobile and personal computer (PC) applications for its users and global content promotional channels. The companyÂ’s suite of utility applications optimizes mobile and PC Internet system performance and provides real time protection against known and unknown security threats. Its mobile and PC applications for users include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices; CM Security, an anti-virus and security application for mobile devices; Battery Doctor, a power optimization tool for mobile devices; Cheetah Browser, a safe Web browser for PCs and mobile devices; CM Browser, a mobile browser; CM Launcher, a secure launcher that offers acceleration, secure protection, and stylish wallpapers, as well as automatically organizes mobile applications based on personal behavior; Photo Grid, a photo collage application that allows users to create professional looking collages of photos through an intuitive interface for mobile devices; CM Locker, a lightweight lock screen; and Duba Anti-virus, an Internet security application for PC and mobile devices. The company also offers content-driven applications comprising Live.me, a live video streaming application; and News Republic, a global mobile news service operator, as well as various products, which include mobile advertising publishing; mobile advertising platform; Duba.com personal start page that aggregates online resources and provides users access to their online destinations; Web and mobile games publishing; and cloud-based data analytics engines. It serves direct advertisers, including mobile application developers, mobile game developers, and e-commerce companies, as well as search engines. 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, China.

CDK Global, Inc. provides integrated information technology and digital marketing solutions to the automotive retail and other industries worldwide. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. It offers technology-based solutions, including automotive Website platforms; and advertising solutions comprising the management of digital advertising spend for original equipment manufacturers and automotive retailers. The companyÂ’s solutions automate and integrate various parts of the dealership and buying process from targeted digital advertising and marketing campaigns to the sale, financing, insuring, parts supply, repair, and maintenance of vehicles. It provides solutions to dealers serving approximately 28,000 retail locations and automotive manufacturers. CDK Global, Inc. is headquartered in Hoffman Estates, Illinois.



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