FingerMotion (NASDAQ:FNGR – Get Free Report) and SoftBank Group (OTCMKTS:SFTBY – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
3.9% of FingerMotion shares are held by institutional investors. Comparatively, 0.0% of SoftBank Group shares are held by institutional investors. 18.8% of FingerMotion shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares FingerMotion and SoftBank Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FingerMotion | $24.13 million | 0.42 | -$7.00 million | ($0.12) | -1.18 |
| SoftBank Group | $51.81 billion | 4.35 | $31.29 billion | $2.83 | 6.97 |
SoftBank Group has higher revenue and earnings than FingerMotion. FingerMotion is trading at a lower price-to-earnings ratio than SoftBank Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
FingerMotion has a beta of -0.37, meaning that its stock price is 137% less volatile than the S&P 500. Comparatively, SoftBank Group has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.
Profitability
This table compares FingerMotion and SoftBank Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FingerMotion | -42.81% | -46.67% | -11.91% |
| SoftBank Group | 62.60% | 26.14% | 8.73% |
Analyst Ratings
This is a summary of recent ratings and target prices for FingerMotion and SoftBank Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FingerMotion | 1 | 0 | 0 | 0 | 1.00 |
| SoftBank Group | 1 | 3 | 5 | 0 | 2.44 |
Summary
SoftBank Group beats FingerMotion on 11 of the 13 factors compared between the two stocks.
About FingerMotion
FingerMotion, Inc., a mobile data specialist company, provides mobile payment and recharge platform system in China. The company offers telecommunication products and services, including data plans, subscription plans, mobile phones, and loyalty points redemption services; bulk short message service and multimedia messaging services; and Rich Communication Services (RCS) platform, a proprietary business messaging platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure. It also operates Sapientus, a proprietary big data insights platform that deliver data-driven for businesses in the insurance, healthcare, and financial services industries. In addition, the company offers value added product and services. FingerMotion, Inc. is headquartered in Singapore.
About SoftBank Group
SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; ICT services products to enterprise customers; and communication device-related products and IoT equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux / OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.
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