Contrasting Magnite (NASDAQ:MGNI) and Hello Group (NASDAQ:MOMO)

Magnite (NASDAQ:MGNI) and Hello Group (NASDAQ:MOMO) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Magnite and Hello Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnite	0	2	8	0	2.80
Hello Group	0	2	1	0	2.33

Magnite currently has a consensus target price of $27.00, indicating a potential upside of 87.76%. Hello Group has a consensus target price of $10.55, indicating a potential upside of 50.93%. Given Magnite’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Magnite is more favorable than Hello Group.

Volatility and Risk

Magnite has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Insider & Institutional Ownership

73.4% of Magnite shares are held by institutional investors. Comparatively, 51.0% of Hello Group shares are held by institutional investors. 3.8% of Magnite shares are held by company insiders. Comparatively, 61.4% of Hello Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Magnite and Hello Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnite	8.25%	8.74%	2.37%
Hello Group	5.96%	10.07%	6.92%

Valuation and Earnings

This table compares Magnite and Hello Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnite	$668.17 million	3.09	$22.79 million	$0.38	37.84
Hello Group	$1.45 billion	0.58	$142.42 million	$0.83	8.42

Hello Group has higher revenue and earnings than Magnite. Hello Group is trading at a lower price-to-earnings ratio than Magnite, indicating that it is currently the more affordable of the two stocks.

Summary

Magnite beats Hello Group on 8 of the 14 factors compared between the two stocks.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.