Contrasting Hello Group (NASDAQ:MOMO) & CoreCard (NYSE:CCRD)

Hello Group (NASDAQ:MOMO) and CoreCard (NYSE:CCRD) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Hello Group and CoreCard”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hello Group	$1.69 billion	0.70	$275.72 million	$0.97	8.40
CoreCard	$57.40 million	2.96	$3.39 million	$0.67	32.15

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

Volatility and Risk

Hello Group has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, CoreCard has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Insider & Institutional Ownership

51.0% of Hello Group shares are held by institutional investors. Comparatively, 43.9% of CoreCard shares are held by institutional investors. 61.4% of Hello Group shares are held by company insiders. Comparatively, 17.2% of CoreCard shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hello Group	11.98%	11.41%	7.51%
CoreCard	9.49%	10.52%	8.70%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hello Group	2	2	2	0	2.00
CoreCard	0	1	0	0	2.00

Hello Group currently has a consensus target price of $8.25, indicating a potential upside of 1.29%. CoreCard has a consensus target price of $21.00, indicating a potential downside of 2.50%. Given Hello Group’s higher possible upside, equities research analysts plainly believe Hello Group is more favorable than CoreCard.

Summary

Hello Group beats CoreCard on 9 of the 13 factors compared between the two stocks.

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.

About CoreCard

CoreCard Corporation, together with its subsidiaries, offers technology solutions and processing services to the financial technology and services market in the United States, Europe, and the Middle East. It designs, develops, and markets a suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers, and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and loan transactions. The company's software solutions allow companies to offer various types of transacting account or card issuing program, as well as installment and revolving loans; set up and maintain account data; record advances and payments; assess fees, interests, and other charges; resolve disputes and chargebacks; manage collections of accounts receivable; generate reports; and settle transactions with financial institutions and network schemes. The company was formerly known as Intelligent Systems Corporation and changed its name to CoreCard Corporation in December 2021. CoreCard Corporation was founded in 1973 and is headquartered in Norcross, Georgia.