Reviewing Xunlei (NASDAQ:XNET) & Viomi Technology (NASDAQ:VIOT)

Xunlei (NASDAQ:XNET) and Viomi Technology (NASDAQ:VIOT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

Xunlei has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Viomi Technology has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of Xunlei shares are owned by institutional investors. Comparatively, 1.2% of Viomi Technology shares are owned by institutional investors. 21.7% of Xunlei shares are owned by insiders. Comparatively, 34.3% of Viomi Technology shares are owned by 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 Xunlei and Viomi Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xunlei	202.62%	4.50%	3.35%
Viomi Technology	N/A	N/A	N/A

Valuation and Earnings

This table compares Xunlei and Viomi Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xunlei	$324.40 million	1.89	$1.22 million	$11.38	0.86
Viomi Technology	$290.30 million	0.82	$8.69 million	$0.06	57.83

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

Analyst Ratings

This is a summary of current recommendations and price targets for Xunlei and Viomi Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	1	0	0	0	1.00
Viomi Technology	0	0	0	0	0.00

Summary

Xunlei beats Viomi Technology on 9 of the 12 factors compared between the two stocks.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.

About Viomi Technology

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, and other smart devices, as well as blenders. It also provides a suite of complementary consumable products and small appliances, such as portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and others, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.