Critical Analysis: AppLovin (NASDAQ:APP) & Lucas GC (NASDAQ:LGCL)

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

Insider and Institutional Ownership

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

Profitability

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

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

Valuation and Earnings

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

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

AppLovin has higher revenue and earnings than Lucas GC.

Analyst Ratings

This is a breakdown of current ratings and price targets for AppLovin and Lucas GC, as reported by MarketBeat.com.

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

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

Summary

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

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.

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.