Contrasting China CGame (OTCMKTS:CCGM) and Tucows (NASDAQ:TCX)

Tucows (NASDAQ:TCX) and China CGame (OTCMKTS:CCGM) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Institutional and Insider Ownership

73.6% of Tucows shares are held by institutional investors. 11.6% of Tucows shares are held by insiders. Comparatively, 53.4% of China CGame shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Tucows and China CGame’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tucows	-25.75%	N/A	-8.36%
China CGame	N/A	N/A	N/A

Volatility & Risk

Tucows has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, China CGame has a beta of 13.34, meaning that its share price is 1,234% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Tucows and China CGame, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tucows	1	0	0	0	1.00
China CGame	0	0	0	0	0.00

Given China CGame’s higher probable upside, analysts clearly believe China CGame is more favorable than Tucows.

Valuation & Earnings

This table compares Tucows and China CGame”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tucows	$362.27 million	0.67	-$109.86 million	($8.97)	-2.45
China CGame	N/A	N/A	N/A	N/A	N/A

China CGame has lower revenue, but higher earnings than Tucows.

Summary

China CGame beats Tucows on 5 of the 8 factors compared between the two stocks.

About Tucows

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

About China CGame

China CGame, Inc. develops Massively Multiplayer Online Role Playing Game (MMORPG) in China. It focuses on self-developed MMORPGs game titles that are based on China’s iconic characters and nostalgic epochs. The company owns two self-developed game engines, Turbo and Apocalypse. It intends to sell prepaid game cards to a range of regional distributors in China; and directly sell game points to players through its online sales platform. The company was formerly known as China Architectural Engineering, Inc. and changed its name to China CGame, Inc. in March 2011. China CGame, Inc. was founded in 1992 and is based in Changzhou, China.