CoreCard (NYSE:CCRD) & Hello Group (NASDAQ:MOMO) Head to Head Review

CoreCard (NYSE:CCRD) and Hello Group (NASDAQ:MOMO) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

43.9% of CoreCard shares are held by institutional investors. Comparatively, 51.0% of Hello Group shares are held by institutional investors. 17.2% of CoreCard shares are held by company insiders. Comparatively, 61.4% of Hello Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

CoreCard has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreCard	0	1	0	0	2.00
Hello Group	2	2	2	0	2.00

CoreCard currently has a consensus price target of $21.00, suggesting a potential downside of 2.50%. Hello Group has a consensus price target of $8.25, suggesting a potential upside of 1.29%. Given Hello Group’s higher probable upside, analysts clearly believe Hello Group is more favorable than CoreCard.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreCard	$57.40 million	2.96	$3.39 million	$0.67	32.15
Hello Group	$1.69 billion	0.70	$275.72 million	$0.97	8.40

Hello Group has higher revenue and earnings than CoreCard. Hello Group is trading at a lower price-to-earnings ratio than CoreCard, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CoreCard	9.49%	10.52%	8.70%
Hello Group	11.98%	11.41%	7.51%

Summary

Hello Group beats CoreCard on 9 of the 13 factors compared between the two stocks.

About CoreCard

CoreCard Corporation, together with its subsidiaries, offers technology solutions and processing services to the financial technology and services market in the United States, Europe, and the Middle East. It designs, develops, and markets a suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers, and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and loan transactions. The company's software solutions allow companies to offer various types of transacting account or card issuing program, as well as installment and revolving loans; set up and maintain account data; record advances and payments; assess fees, interests, and other charges; resolve disputes and chargebacks; manage collections of accounts receivable; generate reports; and settle transactions with financial institutions and network schemes. The company was formerly known as Intelligent Systems Corporation and changed its name to CoreCard Corporation in December 2021. CoreCard Corporation was founded in 1973 and is headquartered in Norcross, Georgia.

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.