Critical Survey: Tencent (OTCMKTS:TCEHY) vs. Suggestion Box (OTCMKTS:SGTB)

Tencent (OTCMKTS:TCEHY) and Suggestion Box (OTCMKTS:SGTB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Institutional & Insider Ownership

0.0% of Tencent shares are held by institutional investors. 8.6% of Suggestion Box 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tencent and Suggestion Box, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent	0	0	2	0	3.00
Suggestion Box	0	0	0	0	0.00

Tencent presently has a consensus target price of $88.00, indicating a potential upside of 5.43%. Given Tencent’s stronger consensus rating and higher probable upside, equities analysts plainly believe Tencent is more favorable than Suggestion Box.

Profitability

This table compares Tencent and Suggestion Box’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tencent	29.55%	19.06%	11.17%
Suggestion Box	N/A	N/A	N/A

Valuation and Earnings

This table compares Tencent and Suggestion Box”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tencent	$91.85 billion	8.32	$27.00 billion	$3.09	27.01
Suggestion Box	N/A	N/A	N/A	N/A	N/A

Tencent has higher revenue and earnings than Suggestion Box.

Summary

Tencent beats Suggestion Box on 8 of the 9 factors compared between the two stocks.

About Tencent

Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People's Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. The company's consumers business provides communication and services, such as instant messaging and social network; digital content including online games, videos, live streaming, news, music, and literature; fintech services, which includes mobile payment, wealth management, loans, and securities trading; and various tools, such as network security management, browser, navigation, application management, email, etc. Its enterprise business comprises marketing solutions, which offers digital tools including user insight, creative management, placement strategy, and digital assets management; and cloud services, such as cloud computing, big data analytics, artificial intelligence, Internet of Things, security and other technologies for financial services, education, healthcare, retail, industry, transport, energy, and radio & television application. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.

About Suggestion Box

Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child safe virtual world that offers games, edutainment, controlled chat, and multiple channels online streaming in one platform. The company was founded in 2004 and is based in Scottsdale, Arizona.