Both momentum AND velocity must be relative to the same thing. In other words if the two cyclists are going along at the same speed, the one cyclist's momentum relative to the other is zero. If they crashed into one another, both moving at the same speed, nothing would happen.
As for the formula, you cantcan't say that 5KJ$5KJ$ produces 10m/s$10m/s$ and then another 5KJ 4.14 m/s$5KJ$ $4.14 m/s$. The formula is not associative.