Comparing Lucas GC (NASDAQ:LGCL) and AppLovin (NASDAQ:APP)

Lucas GC (NASDAQ:LGCL) and AppLovin (NASDAQ:APP) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Lucas GC and AppLovin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucas GC	0	0	0	0	N/A
AppLovin	1	5	12	0	2.61

AppLovin has a consensus target price of $71.72, suggesting a potential downside of 7.50%. Given AppLovin’s higher probable upside, analysts plainly believe AppLovin is more favorable than Lucas GC.

Valuation and Earnings

This table compares Lucas GC and AppLovin’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucas GC	$1.47 billion	0.13	N/A	N/A	N/A
AppLovin	$2.63 billion	9.68	$356.71 million	$1.68	46.15

AppLovin has higher revenue and earnings than Lucas GC.

Institutional and Insider Ownership

41.9% of AppLovin shares are owned by institutional investors. 14.7% of AppLovin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Lucas GC and AppLovin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucas GC	N/A	N/A	N/A
AppLovin	16.46%	51.55%	11.31%

Summary

AppLovin beats Lucas GC on 9 of the 9 factors compared between the two stocks.

About Lucas GC

Lucas GC Limited, through its subsidiaries, provides online agent-centric human capital management services based on platform-as-a-service (PaaS) in the People's Republic of China. Its Star Career and Columbus platforms enables registered users to receive customized job recommendations and work as talent scouts to source suitable candidates for its corporate customers through their social network, as well as receive trainings and other value-added services. The company's platform provides permanent and flexible employment recruitment services; outsourcing services primarily for technology-related projects to design, develop, and deliver the projects within budget and on time with acceptable quality; information technology services to generate sales leads for its corporate customers; and training services comprising career-related certification programs. In addition, it engages in the media and entertainment business; and provides management consulting services. The company was founded in 2011 and is based in Beijing, China. Lucas GC Limited operates as a subsidiary of HTL Lucky Holding Limited.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.