Tencent (OTCMKTS: TCEHY) and Donnelley Financial Solns (NYSE:DFIN) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.
Earnings and Valuation
This table compares Tencent and Donnelley Financial Solns’ gross revenue, earnings per share and valuation.
||Earnings Per Share
|Donnelley Financial Solns
Tencent has higher revenue and earnings than Donnelley Financial Solns. Donnelley Financial Solns is trading at a lower price-to-earnings ratio than Tencent, indicating that it is currently the more affordable of the two stocks.
This table compares Tencent and Donnelley Financial Solns’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Donnelley Financial Solns
Institutional and Insider Ownership
0.4% of Tencent shares are held by institutional investors. Comparatively, 89.7% of Donnelley Financial Solns shares are held by institutional investors. 1.6% of Donnelley Financial Solns shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Tencent pays an annual dividend of $0.07 per share and has a dividend yield of 0.1%. Donnelley Financial Solns does not pay a dividend. Tencent pays out 7.4% of its earnings in the form of a dividend.
Risk & Volatility
Tencent has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Donnelley Financial Solns has a beta of 2.31, meaning that its share price is 131% more volatile than the S&P 500.
This is a breakdown of current recommendations for Tencent and Donnelley Financial Solns, as provided by MarketBeat.com.
||Strong Buy Ratings
|Donnelley Financial Solns
Tencent currently has a consensus target price of $62.00, indicating a potential upside of 16.74%. Donnelley Financial Solns has a consensus target price of $23.33, indicating a potential upside of 39.55%. Given Donnelley Financial Solns’ higher possible upside, analysts clearly believe Donnelley Financial Solns is more favorable than Tencent.
Tencent beats Donnelley Financial Solns on 10 of the 16 factors compared between the two stocks.
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.
About Donnelley Financial Solns
Donnelley Financial Solutions, Inc. provides financial communications, and data and analytics services for the investment and capital markets worldwide. It offers communication tools and services to allow its clients to comply with ongoing regulatory filings; and communications services to create, manage, and deliver registration statements, prospectuses, proxies, and other communications to regulators and investors. The company also provides virtual data rooms to facilitate the deal management requirements of capital markets, and mergers and acquisitions transactions; and data and analytics services that help professionals uncover intelligence from financial disclosure contained within public filings made with the Securities and Exchange Commission. In addition, it offers language solutions, including translation, editing, interpreting, proof-reading, and multilingual typesetting; and specialized content services, such as transcreation, copywriting, linguistic validation by subject matter experts, transcription, voice-over, subtitling, and localization, as well as application testing and quality assurance. The company serves global capital markets compliance and transaction needs for its corporate clients and their advisors, such as law firms and investment bankers; and investment management compliance and analytics needs for mutual fund companies, variable annuity providers, and broker/dealers. Donnelley Financial Solutions, Inc. is based in Chicago, Illinois.
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