Adobe Inc. (ADBE) and Cheetah Mobile Inc. (NYSE:CMCM) Comparison side by side

Adobe Inc. (NASDAQ:ADBE) and Cheetah Mobile Inc. (NYSE:CMCM) compete against each other in the Application Software sector. We will compare them and contrast their institutional ownership, profitability, risk, analyst recommendations, dividends, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adobe Inc. 273 14.59 N/A 5.52 50.14
Cheetah Mobile Inc. 6 0.00 N/A 1.54 3.82

Table 1 shows the gross revenue, earnings per share (EPS) and valuation for Adobe Inc. and Cheetah Mobile Inc. Cheetah Mobile Inc. seems to has lower revenue and earnings compared to Adobe Inc. The business that is more expensive between the two has a higher P/E ratio. Adobe Inc.’s presently higher P/E ratio means it is more expensive than Cheetah Mobile Inc.

Profitability

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

Net Margins Return on Equity Return on Assets
Adobe Inc. 0.00% 29.2% 15.6%
Cheetah Mobile Inc. 0.00% 0% 0%

Volatility and Risk

Adobe Inc. is 12.00% more volatile than Standard and Poor’s 500 because the stock has a beta of 1.12. Cheetah Mobile Inc.’s 130.00% more volatile than Standard and Poor’s 500 volatility due to the stock’s 2.3 beta.

Liquidity

The Current Ratio and Quick Ratio of Adobe Inc. are 1 and 1 respectively. Its competitor Cheetah Mobile Inc.’s Current Ratio is 3 and its Quick Ratio is 3. Cheetah Mobile Inc. can pay off short and long-term obligations better than Adobe Inc.

Analyst Recommendations

The next table highlights the given recommendations and ratings for Adobe Inc. and Cheetah Mobile Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Adobe Inc. 0 4 12 2.75
Cheetah Mobile Inc. 1 0 0 1.00

Adobe Inc. has an average target price of $308.06, and a 1.46% upside potential. Cheetah Mobile Inc. on the other hand boasts of a $5.8 average target price and a 76.83% potential upside. The information presented earlier suggests that Cheetah Mobile Inc. looks more robust than Adobe Inc. as far as analyst view.

Institutional and Insider Ownership

Adobe Inc. and Cheetah Mobile Inc. has shares owned by institutional investors as follows: 88.8% and 22.7%. About 0.1% of Adobe Inc.’s share are owned by insiders. Comparatively, 16.14% are Cheetah Mobile Inc.’s share owned by insiders.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Adobe Inc. 0.02% 1.69% 6.38% 13.06% 16.13% 22.36%
Cheetah Mobile Inc. 0% -5.93% -16.86% -35.21% -51.45% -3.93%

For the past year Adobe Inc. has 22.36% stronger performance while Cheetah Mobile Inc. has -3.93% weaker performance.

Summary

Adobe Inc. beats on 11 of the 12 factors Cheetah Mobile Inc.

Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. This segmentÂ’s flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The companyÂ’s Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, advertising and media optimization, digital experience management, cross-channel campaign management, and audience management solutions, as well as video delivery and monetization to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as eLearning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. The company was founded in 1982 and is headquartered in San Jose, California.

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.

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