Financial Review: Hello Group (NASDAQ:MOMO) vs. Adstar (OTCMKTS:ADST)

Adstar (OTCMKTS:ADST) and Hello Group (NASDAQ:MOMO) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Earnings and Valuation

This table compares Adstar and Hello Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adstar	N/A	N/A	N/A	N/A	N/A
Hello Group	$1.69 billion	0.58	$275.72 million	$1.00	6.77

Hello Group has higher revenue and earnings than Adstar.

Profitability

This table compares Adstar and Hello Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adstar	N/A	N/A	N/A
Hello Group	12.40%	12.09%	8.27%

Insider & Institutional Ownership

51.0% of Hello Group shares are owned by institutional investors. 22.6% of Adstar shares are owned by insiders. Comparatively, 61.4% of Hello Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Adstar and Hello Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adstar	0	0	0	0	0.00
Hello Group	2	2	2	0	2.00

Hello Group has a consensus target price of $7.93, indicating a potential upside of 17.06%. Given Hello Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hello Group is more favorable than Adstar.

Summary

Hello Group beats Adstar on 9 of the 9 factors compared between the two stocks.

About Adstar

AdStar, Inc. engages in the provision of advertising technology services to publishers. It focuses on its application service provider. The company was founded by Leslie Bernhard and Eli Rousso in 1986 and is headquartered in Marina del Rey, CA.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.