Infinite Group (OTCMKTS:IMCI) and Hello Group (NASDAQ:MOMO) Financial Analysis

Hello Group (NASDAQ:MOMO) and Infinite Group (OTCMKTS:IMCI) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

51.0% of Hello Group shares are held by institutional investors. 61.4% of Hello Group shares are held by insiders. Comparatively, 35.0% of Infinite Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Hello Group and Infinite Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hello Group	2	2	2	0	2.00
Infinite Group	0	0	0	0	0.00

Hello Group currently has a consensus target price of $8.25, suggesting a potential upside of 8.98%. Given Hello Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Hello Group is more favorable than Infinite Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hello Group	12.40%	12.09%	8.27%
Infinite Group	N/A	N/A	N/A

Valuation & Earnings

This table compares Hello Group and Infinite Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hello Group	$1.69 billion	0.65	$275.72 million	$1.00	7.57
Infinite Group	$7.00 million	0.00	-$3.56 million	N/A	N/A

Hello Group has higher revenue and earnings than Infinite Group.

Volatility and Risk

Hello Group has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Infinite Group has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Summary

Hello Group beats Infinite Group on 12 of the 12 factors compared between the two stocks.

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.

About Infinite Group

Infinite Group, Inc. develops cybersecurity software in the United States. The company offers Nodeware, a patented software-as-a-service solution that automates network asset identification, and cybersecurity vulnerability management and monitoring; and distributes Webroot, a cloud-based endpoint security platform solution. It also provides cybersecurity consulting services that include incident response, security awareness training, risk management, IT governance and compliance, security assessment, and penetration testing offerings to channel partners and direct customers for various vertical markets, such as banking, manufacturing, supply chain, and technology. In addition, the company offers managed support services related to information security, including troubleshooting, backend analysis, and technical and security support for mission critical technical infrastructure; and sells third party software licenses. The company was formerly known as Infinite Machines Corp. and changed its name to Infinite Group, Inc. in January 1998. Infinite Group, Inc. was incorporated in 1986 and is headquartered in Pittsford, New York.