Momo (NASDAQ: MOMO) and iDreamSky Technology (NASDAQ:DSKY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitabiliy, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Momo and iDreamSky Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Momo 0 1 12 0 2.92
iDreamSky Technology 0 0 0 0 N/A

Momo currently has a consensus target price of $39.54, suggesting a potential downside of 12.81%. Given Momo’s higher possible upside, equities analysts clearly believe Momo is more favorable than iDreamSky Technology.

Insider & Institutional Ownership

42.5% of Momo shares are owned by institutional investors. 61.4% of Momo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Momo has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, iDreamSky Technology has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Earnings & Valuation

This table compares Momo and iDreamSky Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Momo $767.41 million 11.52 $239.07 million $1.08 41.99
iDreamSky Technology N/A N/A N/A N/A N/A

Momo has higher revenue and earnings than iDreamSky Technology.

Profitability

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

Net Margins Return on Equity Return on Assets
Momo 28.59% 36.36% 30.24%
iDreamSky Technology -1.50% -1.80% -1.34%

Summary

Momo beats iDreamSky Technology on 8 of the 9 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 iDreamSky Technology

iDreamSky Technology Limited is a holding company. The Company, through its subsidiaries, and its variable interest entities (VIEs) is principally engaged in the licensing and operating of single player mobile games and mobile online games (the listing business) in the People’s Republic of China. The Company is an independent mobile game publishing platform in China. The Company also operates games as a service, where it offers live game services, engages in live user communications and gains user insights through its multi-dimensional data analysis engine to drive ongoing game optimization and monetization. The Company provides its users with live game services and connects them through friend lists, message boards, leaderboards and user tournaments, enabling in-game interaction and social networking. Its platform offers a range of services, including game redesign and porting, ongoing optimization, marketing, distribution, monetization, payment support and user-related services.

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