Cheetah Mobile (NYSE:CMCM) & Digerati Technologies (OTCMKTS:DTGI) Head to Head Contrast

Digerati Technologies (OTCMKTS:DTGI) and Cheetah Mobile (NYSE:CMCM) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Volatility & Risk

Digerati Technologies has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Insider & Institutional Ownership

0.4% of Cheetah Mobile shares are owned by institutional investors. 25.6% of Digerati Technologies shares are owned by company insiders. Comparatively, 17.1% of Cheetah Mobile shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Digerati Technologies and Cheetah Mobile”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digerati Technologies	$29.96 million	0.10	-$12.64 million	($0.01)	-1.53
Cheetah Mobile	$983.40 million	0.21	-$84.60 million	($2.19)	-3.06

Digerati Technologies has higher earnings, but lower revenue than Cheetah Mobile. Cheetah Mobile is trading at a lower price-to-earnings ratio than Digerati Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Digerati Technologies and Cheetah Mobile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digerati Technologies	0	0	0	0	0.00
Cheetah Mobile	1	0	0	0	1.00

Profitability

This table compares Digerati Technologies and Cheetah Mobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digerati Technologies	-14.88%	N/A	-27.19%
Cheetah Mobile	-47.30%	-13.85%	-5.46%

About Digerati Technologies

Digerati Technologies, Inc., through its subsidiaries, provides a portfolio of Internet-based telephony products and services through its cloud application platform and session-based communication network in the United States. The company offers Internet broadband, fiber, mobile broadband, and cloud wide area network (WAN) or software-defined wide area network (SD-WAN) solutions; cloud communication services, including fully hosted IP/PBX, video conferencing, mobile applications, Voice over Internet Protocol (VoIP) transport, session initiation protocol (SIP) trunking, call center applications, auto attendant, voice and web conferencing, call recording, messaging, voicemail to email conversion, integrated mobility applications, and customized VoIP services; and remote network monitoring, data backup, and disaster recovery services, as well as enterprise-class data and connectivity solutions, such as cloud WAN or SD-WAN, fiber, mobile broadband, and Ethernet over copper services. It primarily serves small to medium-sized enterprise customers through distributors and value-added resellers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas.

About Cheetah Mobile

Cheetah Mobile Inc. along with its subsidiaries, engages in provision of internet services, artificial intelligence, and other services in the People's Republic of China, Hong Kong, Japan, and internationally. The company's internet products include Duba Anti-virus, an internet security application to protect users against known and unknown security threats and malicious applications; and Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices. It also offers value-added products, such as PC and mobile products, as well as wallpaper, office optimization software, and others; E-Coupon vending robot, a delivery and reception robot, which includes marketing campaigns and services; and multi-cloud management platform and overseas advertising agency service. In addition, the company provides mobile advertising services; duba.com personal start page that aggregates online resources and provides users access to their online destinations, such as online shopping, video, online game, travel, and local information; artificial intelligence and other services; and premium membership services. It serves mobile advertising networks and partners, e-commerce companies, mobile application developers, and mobile game developers, as well as individual customers. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is based in Beijing, the People's Republic of China.