Comparing Kingsoft Cloud (NASDAQ:KC) & Datasea (NASDAQ:DTSS)

Kingsoft Cloud (NASDAQ:KCGet Free Report) and Datasea (NASDAQ:DTSSGet Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kingsoft Cloud and Datasea, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kingsoft Cloud 0 3 0 0 2.00
Datasea 0 0 0 0 N/A

Kingsoft Cloud currently has a consensus target price of $5.00, indicating a potential upside of 87.27%. Given Kingsoft Cloud’s higher possible upside, research analysts plainly believe Kingsoft Cloud is more favorable than Datasea.

Risk and Volatility

Kingsoft Cloud has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Earnings & Valuation

This table compares Kingsoft Cloud and Datasea’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kingsoft Cloud $1.19 billion 0.57 -$385.40 million ($1.43) -1.87
Datasea $7.05 million 0.77 -$9.48 million ($4.80) -0.45

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

Profitability

This table compares Kingsoft Cloud and Datasea’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kingsoft Cloud -32.07% -27.86% -14.92%
Datasea -63.97% N/A -197.63%

Insider and Institutional Ownership

17.7% of Kingsoft Cloud shares are owned by institutional investors. Comparatively, 0.1% of Datasea shares are owned by institutional investors. 14.2% of Kingsoft Cloud shares are owned by insiders. Comparatively, 59.5% of Datasea shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Kingsoft Cloud beats Datasea on 7 of the 12 factors compared between the two stocks.

About Kingsoft Cloud

(Get Free Report)

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, game, entertainment, e-commerce, education, traveling, advertising, intelligent mobility, office automation, artificial intelligent, and mobile internet; and enterprise cloud services to customers in financial service, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

About Datasea

(Get Free Report)

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

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