Critical Survey: Kingsoft Cloud (NASDAQ:KC) versus Xunlei (NASDAQ:XNET)

Kingsoft Cloud (NASDAQ:KC) and Xunlei (NASDAQ:XNET) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Valuation & Earnings

This table compares Kingsoft Cloud and Xunlei’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kingsoft Cloud $1.01 billion 6.55 -$147.47 million ($0.90) -32.87
Xunlei $186.37 million 1.41 -$13.84 million N/A N/A

Xunlei has lower revenue, but higher earnings than Kingsoft Cloud.

Analyst Ratings

This is a breakdown of recent ratings for Kingsoft Cloud and Xunlei, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kingsoft Cloud 0 0 3 0 3.00
Xunlei 0 0 0 0 N/A

Kingsoft Cloud currently has a consensus price target of $60.00, suggesting a potential upside of 102.84%. Given Kingsoft Cloud’s higher possible upside, research analysts plainly believe Kingsoft Cloud is more favorable than Xunlei.

Insider and Institutional Ownership

26.9% of Kingsoft Cloud shares are owned by institutional investors. Comparatively, 13.3% of Xunlei shares are owned by institutional investors. 21.7% of Xunlei shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Kingsoft Cloud and Xunlei’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kingsoft Cloud -14.33% -12.59% -8.66%
Xunlei -0.83% -0.56% -0.39%

Volatility and Risk

Kingsoft Cloud has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Xunlei has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Summary

Kingsoft Cloud beats Xunlei on 7 of the 12 factors compared between the two stocks.

Kingsoft Cloud Company Profile

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations in China. The company offers public cloud services to customers in various verticals, including game, video, AI, e-commerce, education, and mobile internet; enterprise cloud services to customers in financial service, public service, and healthcare business, and others. It also provides IoTÂ-smart living solutions. The company was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

Xunlei Company Profile

Xunlei Limited, together with its subsidiaries, operates an Internet platform for digital media content in the People's Republic of China. The company's platform is based on cloud technology that enables users to access, manage, and consume digital media content. It offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and cloud acceleration subscription services that offer users premium services through various products, such as Green Channel. The company also provides Mobile Xunlei, a mobile application that allows users to search, download, and consume digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; live video streaming and online advertising services; and cloud computing and other internet value-added services. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is based in Shenzhen, the People's Republic of China.

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