Intuit (NASDAQ:INTU) and Momo (NASDAQ:MOMO) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
Insider and Institutional Ownership
87.6% of Intuit shares are held by institutional investors. Comparatively, 53.0% of Momo shares are held by institutional investors. 4.6% of Intuit shares are held by company insiders. Comparatively, 61.4% of Momo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Intuit has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Momo has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.
Intuit pays an annual dividend of $1.88 per share and has a dividend yield of 0.8%. Momo does not pay a dividend. Intuit pays out 41.5% of its earnings in the form of a dividend. Intuit has raised its dividend for 8 consecutive years.
This is a breakdown of recent ratings and recommmendations for Intuit and Momo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Intuit currently has a consensus target price of $241.28, suggesting a potential downside of 0.77%. Momo has a consensus target price of $48.00, suggesting a potential upside of 60.64%. Given Momo’s stronger consensus rating and higher probable upside, analysts plainly believe Momo is more favorable than Intuit.
Earnings & Valuation
This table compares Intuit and Momo’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Intuit||$5.96 billion||10.56||$1.21 billion||$4.53||53.67|
|Momo||$1.95 billion||3.05||$409.54 million||$1.96||15.24|
Intuit has higher revenue and earnings than Momo. Momo is trading at a lower price-to-earnings ratio than Intuit, indicating that it is currently the more affordable of the two stocks.
This table compares Intuit and Momo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Intuit beats Momo on 12 of the 17 factors compared between the two stocks.
Intuit Inc. provides financial management and compliance products and services for small businesses, consumers, self-employed, and accounting professionals in the United States, Canada, and internationally. The company's Small Business & Self-Employed segment provides QuickBooks online services and desktop software solutions comprising QuickBooks Enterprise, a hosted or server-based solution and QuickBooks Advanced, an online enterprise solution; QuickBooks Self-Employed solution; and QuickBooks Online Accountant and QuickBooks Accountant Desktop Plus solutions; payroll solutions, such as online payroll processing, direct deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and state payroll tax forms. This segment also offers payment processing solutions, including credit card, debit card, electronic benefits, and gift card processing services; check verification, check guarantee, and electronic check conversion services; e-invoicing services; and Web-based transaction processing services for online merchants, as well as provides financial supplies and financing for small businesses. Its Consumer segment provides TurboTax Online tax return preparation services and electronic tax filing services. The company's Strategic Partner segment offers Lacerte, ProSeries, and ProFile desktop tax preparation software products; and ProConnect Tax Online tax return preparation services, bank products, and related services. It sells products and services through various sales and distribution channels, including Websites, promotions, call centers, retail display, and online and mobile application stores, as well as through selected alliance partners and accountants. Intuit Inc. was founded in 1983 and is headquartered in Mountain View, California.
Momo Inc. operates a mobile-based social and entertainment platform in the People's Republic of China. The company operates Momo platform that includes its Momo mobile application and various related features, functionalities, tools, and services to users, customers, and platform partners. It offers Momo mobile application that enables users to establish and expand their social relationships based on locations; interests; and recreational activities, including live talent shows, short videos, social games, and other video- and audio-based interactive experiences. The company also operates Tantan, a social and dating app to help its users to find and establish romantic connections, as well as to meet interesting people primarily for young mobile Internet users. The company was formerly known as Momo Technology Company Limited and changed its name to Momo Inc. in July 2014. Momo Inc. was founded in 2011 and is headquartered in Beijing, the People's Republic of China.
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