Luokung Technology (NASDAQ:LKCO) and Virtusa (NASDAQ:VRTU) Head-To-Head Analysis

Luokung Technology (NASDAQ:LKCO) and Virtusa (NASDAQ:VRTU) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

2.5% of Luokung Technology shares are owned by institutional investors. Comparatively, 93.8% of Virtusa shares are owned by institutional investors. 4.7% of Virtusa shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Luokung Technology and Virtusa’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Luokung Technology $18.78 million 33.04 -$31.51 million N/A N/A
Virtusa $1.31 billion 1.19 $47.90 million $1.73 29.66

Virtusa has higher revenue and earnings than Luokung Technology.

Volatility and Risk

Luokung Technology has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Virtusa has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Luokung Technology and Virtusa, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luokung Technology 0 0 0 0 N/A
Virtusa 0 6 1 0 2.14

Virtusa has a consensus price target of $46.25, suggesting a potential downside of 9.88%. Given Virtusa’s higher possible upside, analysts clearly believe Virtusa is more favorable than Luokung Technology.

Profitability

This table compares Luokung Technology and Virtusa’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luokung Technology N/A N/A N/A
Virtusa 3.32% 13.33% 4.30%

Summary

Virtusa beats Luokung Technology on 9 of the 11 factors compared between the two stocks.

About Luokung Technology

Luokung Technology Corp., through its subsidiaries, provides location-based services and mobile application products for long distance travelers in the People's Republic of China. It offers Luokuang mobile application, a content and service distribution platform that provides content and services, such as information, entertainment, travel, e-commerce, online to offline, advertisement, and other marketing features. The company also offers software development kits and application-programming interfaces, which provide spatial-temporal big data analysis and customized map to software and mobile application developers; and spatial temporal indexing cloud service, a data-level virtualization technology. In addition, it offers information SuperEngine that includes the server engine, which enables to store, manage, and index the spatial temporal big data on the server side; and Web graphics image engine that supports transmission of graphics images, as well as display and edge computing for multi-terminal and cross-platform. Further, the company provides spatial temporal cloud platform that offers cloud services, including data storage, data resource, and platform support services, as well as supports users to aggregate multi-source spatial data, map services, and Internet of Things streaming data. Luokung Technology Corp. has a strategic partnership with Jiangsu Dianyu Information Technology Co., Ltd. to expand mobile commercial big data services in the 5G era. Luokung Technology Corp. is headquartered in Beijing, China.

About Virtusa

Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services primarily in North America, Europe, and Asia. The company offers business and IT consulting services, including advisory/target operating model, business process re-engineering/business process management, application portfolio rationalization, and business/technology alignment analysis; digital transformation services, such as digital strategy user experience and design, application and platform engineering analytics, intelligent automation content and customer experience, and cyber security; and cloud transformation services comprising cloud strategy and migration, cloud native applications, and capex to opex models. It also provides application development, software product engineering, CRM and SAP implementation, content management, enterprise mobility, cloud computing, social media, and cloud engineering solutions; systems consolidation and rationalization, technology migration and porting, and Web-enablement of legacy applications; data management, business intelligence, reporting and decision support, master data management, data integration, big data analytics, data lake, and data on the cloud services; and software quality assurance and managed testing services. In addition, the company offers application enhancement, maintenance, and support, and cloud-environment management and support; managed infrastructure, and remote application monitoring and support services; and IT efficiency improvement services. Further, it offers digital engineering and operational excellence services-based, and transformational solutions. Virtusa Corporation serves communications and technology; banking, financial services, and insurance; and media and information industries. The company was formerly known as eRunway, Inc. and changed its name to Virtusa Corporation in April 2002. Virtusa Corporation was founded in 1996 and is headquartered in Southborough, Massachusetts.

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