Critical Review: Validian (OTCMKTS:VLDI) and SEA (NYSE:SE)

Validian (OTCMKTS:VLDI) and SEA (NYSE:SE) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Validian	N/A	N/A	N/A
SEA	6.41%	14.12%	5.76%

Analyst Ratings

This is a breakdown of current ratings for Validian and SEA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Validian	0	0	0	0	0.00
SEA	0	4	9	1	2.79

SEA has a consensus target price of $155.54, indicating a potential upside of 74.67%. Given SEA’s stronger consensus rating and higher probable upside, analysts plainly believe SEA is more favorable than Validian.

Insider & Institutional Ownership

59.5% of SEA shares are held by institutional investors. 28.3% of Validian shares are held by insiders. Comparatively, 0.2% of SEA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Validian and SEA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Validian	N/A	N/A	N/A	N/A	N/A
SEA	$25.19 billion	2.16	$1.58 billion	$2.54	35.06

SEA has higher revenue and earnings than Validian.

Summary

SEA beats Validian on 9 of the 10 factors compared between the two stocks.

About Validian

Validian Corporation, a development stage company, provides software products to assist public and private enterprises in Canada and internationally. The company primarily offers ValidianProtect, a software only cyber security technology comprising an application and data protection platform and a data protection module, which protect the life cycle of data by providing secure access, retrieval, transfer, receipt, storage, and usage of digital information on mobile, cloud, Web, local and network applications, devices, servers, databases, and memory at rest, as well as in transit and in usage using wired, and wireless and mobile networks. Its ValidianProtect also provides secure mobile messaging and communications, cloud computing, cloud storage, distributed computing and Web application and Web portal access and usage, software defined networking, and the Internet of Things and SCADA for computers, servers, databases, intelligent sensors, and tablets and smartphones. In addition, the company offers solutions customized to the client's business process to ensure authenticity, integrity, and custody of digital assets. It offers its products through direct sales, as well as through channel partners, such as independent software vendors, application service providers, value-added resellers, independent marketing representatives, system integrators, and original equipment manufacturers. The company was formerly known as Sochrys.com Inc. and changed its name to Validian Corporation in January 2003. Validian Corporation was incorporated in 1989 and is based in Ottawa, Canada.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.