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How Does Cheetah Mobile Compare to Its Peers?

Gabriel Kane

Cheetah Mobile's Revenue Rose and Income Fell in Fiscal 3Q15

(Continued from Prior Part)

Cheetah Mobile and its peers

In this part, we’ll compare Cheetah Mobile with its peers:

  • The PBV (price-to-book value) ratios of Cheetah Mobile (CMCM), Baidu (BIDU), Qihoo 360 Technology (QIHU), and Sohu.com (SOHU) are 6.3x, 7.7x, 7.2x, and 1.6x, respectively, as of November 17, 2015.

  • The price-to-sales ratios of Cheetah Mobile, Baidu, Qihoo 360 Technology, and Sohu.com are 6.3x, 7.0x, 5.0x, and 1.0x, respectively.

According to the above findings, the peers outperformed Cheetah Mobile based on the PBV ratio. However, Cheetah Mobile is ahead of most of its peers based on the price-to-sales ratio.

ETFs that invest in Cheetah Mobile

The Guggenheim Spin-Off ETF (CSD) invests 3.1% of its holdings in Cheetah Mobile. CSD tracks an index of US-listed stocks spun off from corporate parents over the past 30 months. The index holds different sizes of companies.

The First Trust ISE Chindia Fund (FNI) invests 0.94% of its holdings in Cheetah Mobile. FNI tracks an index of stocks from China and India. They’re screened by market cap and weighted in tiers.

The AdvisorShares Madrona Forward International ETF (FWDI) invests 0.70% of its holdings in Cheetah Mobile. FWDI is an actively managed fund of large liquid ADRs (American depositary receipts) selected and weighted based on Madrona Funds’ proprietary investment process.

Comparing Cheetah Mobile and its ETFs

Now, let’s compare Cheetah Mobile with the ETFs that invest in it:

  • The YTD (year-to-date) price movements of Cheetah Mobile, CSD, FNI, and FWDI are 20.0%, -10.2%, -3.5%, and -7.6%, respectively.
  • The PBV ratios of Cheetah Mobile, CSD, FNI, and FWDI are 6.3x, 1.7x, 2.8x, and 1.2x, respectively.

As a result, Cheetah Mobile outperformed its ETFs based on the price movement and PBV ratio.

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