Comparing HUYA (NYSE:HUYA) and Donnelley Financial Solutions (NYSE:DFIN)

Donnelley Financial Solutions (NYSE:DFIN) and HUYA (NYSE:HUYA) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Donnelley Financial Solutions has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, HUYA has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Donnelley Financial Solutions and HUYA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donnelley Financial Solutions	0	0	3	0	3.00
HUYA	0	5	1	0	2.17

Donnelley Financial Solutions presently has a consensus target price of $71.3333, suggesting a potential upside of 28.61%. HUYA has a consensus target price of $4.5667, suggesting a potential upside of 38.17%. Given HUYA’s higher probable upside, analysts clearly believe HUYA is more favorable than Donnelley Financial Solutions.

Insider & Institutional Ownership

93.8% of Donnelley Financial Solutions shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 4.3% of Donnelley Financial Solutions shares are owned by company insiders. Comparatively, 1.2% of HUYA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Donnelley Financial Solutions and HUYA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Donnelley Financial Solutions	10.87%	20.03%	10.17%
HUYA	-2.45%	1.35%	0.93%

Valuation and Earnings

This table compares Donnelley Financial Solutions and HUYA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Donnelley Financial Solutions	$781.90 million	1.95	$92.40 million	$2.83	19.60
HUYA	$832.84 million	0.89	-$6.57 million	($0.09)	-36.72

Donnelley Financial Solutions has higher earnings, but lower revenue than HUYA. HUYA is trading at a lower price-to-earnings ratio than Donnelley Financial Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

Donnelley Financial Solutions beats HUYA on 12 of the 14 factors compared between the two stocks.

About Donnelley Financial Solutions

Donnelley Financial Solutions, Inc. provides innovative software and technology-enabled financial regulatory and compliance solutions in the United States, Asia, Europe, Canada, and internationally. It operates through four segments: Capital Markets Software Solutions (CM-SS); Capital Markets Compliance and Communications Management (CM-CCM); Investment Companies Software Solutions (IC-SS); and Investment Companies Compliance and Communications Management (IC-CCM). The CM-SS segment provides Venue and ActiveDisclosure solutions to public and private companies to manage public and private transactional and compliance processes; collaborate; and tag, validate, and file SEC documents. The CM-CCM segment offers tech-enabled services and print and distribution solutions to public and private companies for deal solutions and SEC compliance requirements. The IC-SS segment provides clients with the Arc Suite platform that contains a comprehensive suite of cloud-based solutions, including ArcDigital, ArcReporting, ArcPro, and ArcRegulatory, as well as services that enable storage and management of compliance and regulatory information in a self-service and central repository for accessing, assembling, editing, translating, rendering, and submitting documents to regulators and investors. The IC-CCM segment offers tech-enabled solutions for creating, filing and distributing regulatory communications, and solutions for investor communications, as well as XBRL and iXBRL-formatted filings pursuant for Investment Company Act through the SEC’s EDGAR system. This segment also provides turnkey proxy services, including discovery, planning and implementation, print and mail management, solicitation, tabulation services, stockholder meeting review, and expert support. Donnelley Financial Solutions, Inc. was founded in 1983 and is headquartered in Chicago, Illinois.

About HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.