Financial Review: Tencent (TCEHY) vs. Applied DNA Sciences (APDN)

Applied DNA Sciences (NASDAQ: APDN) and Tencent (OTCMKTS:TCEHY) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Applied DNA Sciences and Tencent, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied DNA Sciences 0 0 1 0 3.00
Tencent 0 0 4 0 3.00

Applied DNA Sciences presently has a consensus price target of $5.00, indicating a potential upside of 242.47%. Tencent has a consensus price target of $63.00, indicating a potential upside of 27.43%. Given Applied DNA Sciences’ higher possible upside, research analysts clearly believe Applied DNA Sciences is more favorable than Tencent.

Institutional and Insider Ownership

11.8% of Applied DNA Sciences shares are owned by institutional investors. Comparatively, 0.3% of Tencent shares are owned by institutional investors. 21.4% of Applied DNA Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Applied DNA Sciences and Tencent’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied DNA Sciences $4.75 million 9.25 -$12.85 million ($0.49) -2.98
Tencent $36.39 billion 12.91 $10.58 billion $0.94 52.60

Tencent has higher revenue and earnings than Applied DNA Sciences. Applied DNA Sciences is trading at a lower price-to-earnings ratio than Tencent, indicating that it is currently the more affordable of the two stocks.

Dividends

Tencent pays an annual dividend of $0.07 per share and has a dividend yield of 0.1%. Applied DNA Sciences does not pay a dividend. Tencent pays out 7.4% of its earnings in the form of a dividend.

Volatility & Risk

Applied DNA Sciences has a beta of -0.98, meaning that its stock price is 198% less volatile than the S&P 500. Comparatively, Tencent has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Applied DNA Sciences and Tencent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied DNA Sciences -268.66% -149.68% -116.76%
Tencent 30.08% 24.63% 11.93%

Summary

Tencent beats Applied DNA Sciences on 11 of the 15 factors compared between the two stocks.

About Applied DNA Sciences

Applied DNA Sciences, Inc. provides biotechnology based security solutions for supply chain security, brand protection, and law enforcement applications in the United States, Europe, Asia, and internationally. The company's supply chain security and product authentication solutions include SigNature molecular tags that are ingredients used to fortify brand protection efforts and strengthen supply chain security, as well as mark, track, and convict criminals; SigNature T molecular tags, which are tagging and authentication systems for use in brand protection efforts and raw material source compliance programs; and fiberTyping, a test of native cotton fiber DNA. It also provides DNAnet, a DNA marker to link evidence and offenders to specific crime scenes; Beacon locked optical markers, which create a protected covert screening tool that can be adapted to packaging, security labels, and high?value assets through inks, varnishes, and coatings; and SigNify IF portable DNA reader that provides real-time authentication of in the field?DNA. In addition, the company offers digitalDNA, a software platform to manage the security of company-marked goods from point of marking to point of authentication or validation to end of life; and DNA Transfer Systems, which offer remote Internet access for real-time monitoring. Further, it provides CertainT Supply Chain Platform that provides proof of product claims for materials, items, or products; and Triathlon PCR systems that allow for the large-scale production of specific DNA sequences. Applied DNA Sciences, Inc. has a cooperative research and development agreement with the U.S. Army Research, Development and Engineering Command's Edgewood Chemical Biological Center; and a collaboration agreement with Colorcon, Inc. The company was formerly known as Datalink Systems, Inc. and changed its name to Applied DNA Sciences, Inc. in 2002. Applied DNA Sciences, Inc. was founded in 1983 and is headquartered in Stony Brook, New York.

About Tencent

Tencent Holdings Limited, an investment holding company, provides Internet value-added services (VAS) and online advertising services in Mainland China, Hong Kong, North America, Europe, other Asian countries, and internationally. The company operates through VAS, Online Advertising, and Others segments. It offers online/mobile games, community VAS, and applications across various Internet and mobile platforms; instant messaging services; and online literature services. The company's online advertising services include display advertising; and delivery of pay-for click, pay-for download, or pay-for instant display advertisements. The company also provides payment related, cloud, and other services. In addition, it is involved in the development of software and provision of information technology services; asset management business; design and production of advertisement; development and operation of online games; and provision of online music entertainment services. Tencent Holdings Limited has strategic partnerships with Dentsu Aegis Network and Ubisoft. The company was founded in 1998 and is headquartered in Shenzhen, China.

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