Financial Analysis: Global Digital Solutions (OTCMKTS:GDSI) and Cheetah Mobile (NYSE:CMCM)

Global Digital Solutions (OTCMKTS:GDSI) and Cheetah Mobile (NYSE:CMCM) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Institutional and Insider Ownership

0.4% of Cheetah Mobile shares are held by institutional investors. 0.6% of Global Digital Solutions shares are held by insiders. Comparatively, 17.1% of Cheetah Mobile shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Global Digital Solutions and Cheetah Mobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Digital Solutions	N/A	N/A	N/A
Cheetah Mobile	-22.66%	-4.37%	-1.70%

Risk and Volatility

Global Digital Solutions has a beta of 2.4, meaning that its share price is 140% more volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Global Digital Solutions and Cheetah Mobile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Digital Solutions	0	0	0	0	0.00
Cheetah Mobile	1	0	0	0	1.00

Given Global Digital Solutions’ higher probable upside, research analysts plainly believe Global Digital Solutions is more favorable than Cheetah Mobile.

Earnings and Valuation

This table compares Global Digital Solutions and Cheetah Mobile”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Digital Solutions	N/A	N/A	N/A	N/A	N/A
Cheetah Mobile	$164.51 million	0.96	-$36.85 million	($1.25)	-4.17

Global Digital Solutions has higher earnings, but lower revenue than Cheetah Mobile.

Summary

Global Digital Solutions beats Cheetah Mobile on 5 of the 9 factors compared between the two stocks.

About Global Digital Solutions

Global Digital Solutions, Inc., together with its subsidiaries, focuses on the cyber arms technology and security and technology solutions business. The company is based in West Palm Beach, Florida.

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.