Slack (NYSE:WORK) and SEA (NYSE:SE) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares Slack and SEA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Slack $400.55 million 29.63 -$140.68 million N/A N/A
SEA $826.97 million 10.67 -$961.24 million ($2.96) -9.11

Slack has higher earnings, but lower revenue than SEA.

Profitability

This table compares Slack and SEA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Slack N/A N/A N/A
SEA -114.88% -158.33% -35.29%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Slack and SEA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Slack 0 7 9 0 2.56
SEA 0 0 6 0 3.00

Slack currently has a consensus target price of $35.81, indicating a potential upside of 64.20%. SEA has a consensus target price of $42.40, indicating a potential upside of 57.15%. Given Slack’s higher probable upside, equities research analysts clearly believe Slack is more favorable than SEA.

Insider and Institutional Ownership

19.4% of Slack shares are held by institutional investors. Comparatively, 64.4% of SEA shares are held by institutional investors. 0.2% of SEA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Slack beats SEA on 7 of the 11 factors compared between the two stocks.

Slack Company Profile

Slack Technologies, Inc. operates Slack, a business technology software platform in the United States and internationally. Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model. The company was formerly known as Tiny Speck, Inc. and changed its name to Slack Technologies, Inc. in 2014. Slack Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

SEA Company Profile

Sea Limited engages in the digital entertainment, e-commerce, and digital financial service businesses in Taiwan, Thailand, Vietnam, Indonesia, and internationally. It provides Garena digital entertainment platform for users to access mobile and PC online games, and eSports operations; and access to other entertainment content, such as live streaming of online gameplay and social features. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that offers integrated payment and logistics infrastructure and seller services. In addition, it offers digital financial services to individuals and businesses, including e-wallet and payment services through the AirPay mobile app and AirPay counter applications on mobile phones or computers; and payment processing services for Shopee. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was founded in 2009 and is headquartered in Singapore.

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