Analyzing Unisys (NYSE:UIS) and Kingsoft Cloud (NASDAQ:KC)

Unisys (NYSE:UIS) and Kingsoft Cloud (NASDAQ:KC) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Unisys and Kingsoft Cloud, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unisys	2	0	2	0	2.00
Kingsoft Cloud	1	0	4	1	2.83

Unisys currently has a consensus target price of $5.00, indicating a potential upside of 105.34%. Kingsoft Cloud has a consensus target price of $16.67, indicating a potential upside of 105.51%. Given Kingsoft Cloud’s stronger consensus rating and higher possible upside, analysts plainly believe Kingsoft Cloud is more favorable than Unisys.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Unisys	-21.65%	-14.09%	2.41%
Kingsoft Cloud	-5.49%	-7.85%	-2.41%

Risk and Volatility

Unisys has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, Kingsoft Cloud has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unisys	$1.95 billion	0.09	-$339.80 million	($5.89)	-0.41
Kingsoft Cloud	$1.37 billion	1.79	-$133.88 million	($0.28)	-28.96

Kingsoft Cloud has lower revenue, but higher earnings than Unisys. Kingsoft Cloud is trading at a lower price-to-earnings ratio than Unisys, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.9% of Unisys shares are held by institutional investors. Comparatively, 13.4% of Kingsoft Cloud shares are held by institutional investors. 11.6% of Unisys shares are held by company insiders. Comparatively, 14.2% of Kingsoft Cloud shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Kingsoft Cloud beats Unisys on 10 of the 15 factors compared between the two stocks.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.