Contrasting Momo (MOMO) & Qudian (QD)

Momo (NASDAQ: MOMO) and Qudian (NYSE:QD) are both mid-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares Momo and Qudian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Momo 25.88% 39.60% 32.36%
Qudian N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Momo and Qudian, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Momo 0 1 9 0 2.90
Qudian 0 0 6 0 3.00

Momo presently has a consensus target price of $42.20, indicating a potential upside of 59.43%. Qudian has a consensus target price of $21.00, indicating a potential upside of 75.00%. Given Qudian’s stronger consensus rating and higher probable upside, analysts plainly believe Qudian is more favorable than Momo.

Valuation & Earnings

This table compares Momo and Qudian’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Momo $553.10 million 9.50 $145.25 million $1.47 18.01
Qudian $212.83 million 18.61 $85.06 million $0.89 13.48

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

Institutional and Insider Ownership

39.8% of Momo shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Momo beats Qudian on 9 of the 12 factors compared between the two stocks.

Momo Company Profile

Momo Inc. is a holding company. The Company operates Momo, a mobile-based social networking platform. The Company’s Momo platform includes its Momo mobile application and a range of related features, functionalities, tools and services that it provides to users, customers and platform partners. Momo users can maintain their relationships through its private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on its platform. It also offers live music and entertainment broadcasts on its Momo platform. The Momo mobile application, which is available on android, iPhone operating system (iOS) and Windows platforms, enables users to establish social relationships based on locations and interests. Momo offers a personal way for users to discover people nearby, and the Company facilitates the connecting, communicating, interacting, and content sharing with others.

Qudian Company Profile

Qudian Inc. provides cash credit products, which provide funds in digital form, and merchandise credit products. The Company operates through an online platform and all the transaction are facilitated through mobile devices. Borrowers can apply for credit on their mobile phones and receive approval within a few seconds. Approved borrowers are then able to draw down on their cash credit with cash disbursed immediately into their Alipay accounts in digital form. It also offers merchandise credit products to finance borrowers’ direct purchase of merchandise offered on its marketplace on installment basis. Its marketplace connects consumers with merchandise suppliers. It offers 14 categories of merchandise from over 1,000 brands covering primarily consumer electronics, home appliances, watches and accessories, sports and outdoor merchandise and luggage.

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