Financial Review: Hello Group (NASDAQ:MOMO) and Bilibili (NASDAQ:BILI)

Bilibili (NASDAQ:BILI – Get Free Report) and Hello Group (NASDAQ:MOMO – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Institutional and Insider Ownership

16.1% of Bilibili shares are held by institutional investors. Comparatively, 51.0% of Hello Group shares are held by institutional investors. 22.2% of Bilibili 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Bilibili 4.88% 11.42% 4.29%
Hello Group 11.02% 10.43% 8.41%

Risk and Volatility

Bilibili has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bilibili and Hello Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bilibili $31.42 billion 0.20 $170.67 million $0.49 31.61
Hello Group $1.48 billion 0.34 $114.97 million $0.98 4.82

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

Analyst Ratings

This is a breakdown of recent recommendations for Bilibili and Hello Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bilibili 0 1 9 0 2.90
Hello Group 1 1 1 0 2.00

Bilibili currently has a consensus price target of $29.70, suggesting a potential upside of 91.74%. Hello Group has a consensus price target of $9.05, suggesting a potential upside of 91.74%. Given Hello Group’s higher possible upside, analysts plainly believe Hello Group is more favorable than Bilibili.

About Bilibili

(Get Free Report)

Bilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic. The company also provides advertising services; and IP derivatives and other services. In addition, it engages in the business and technology development activities; e-commerce business; and video, comics, and game distribution activities. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.

About Hello Group

(Get Free Report)

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.

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