Comparing Kingsoft Cloud (NASDAQ:KC) & Expensify (NASDAQ:EXFY)

Expensify (NASDAQ:EXFY) and Kingsoft Cloud (NASDAQ:KC) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Expensify	-11.81%	-14.72%	-8.89%
Kingsoft Cloud	-28.41%	-19.13%	-7.90%

Valuation & Earnings

This table compares Expensify and Kingsoft Cloud”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expensify	$150.69 million	1.76	-$41.46 million	($0.18)	-19.11
Kingsoft Cloud	$7.28 billion	0.36	-$306.53 million	($1.20)	-8.65

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

Institutional & Insider Ownership

68.4% of Expensify shares are owned by institutional investors. Comparatively, 13.4% of Kingsoft Cloud shares are owned by institutional investors. 17.3% of Expensify shares are owned by insiders. Comparatively, 14.2% of Kingsoft Cloud shares are owned by 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expensify	0	3	1	0	2.25
Kingsoft Cloud	0	1	6	1	3.00

Expensify currently has a consensus price target of $3.17, indicating a potential downside of 7.95%. Kingsoft Cloud has a consensus price target of $5.93, indicating a potential downside of 42.84%. Given Expensify’s higher probable upside, equities research analysts plainly believe Expensify is more favorable than Kingsoft Cloud.

Volatility & Risk

Expensify has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Kingsoft Cloud has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500.

Summary

Expensify beats Kingsoft Cloud on 8 of the 15 factors compared between the two stocks.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily 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, network, database, big data, security, 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, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.