Trade Desk (NASDAQ:TTD – Get Free Report) and Tencent (OTCMKTS:TCEHY – Get Free Report) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Insider & Institutional Ownership
67.8% of Trade Desk shares are owned by institutional investors. Comparatively, 0.0% of Tencent shares are owned by institutional investors. 10.0% of Trade Desk shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Trade Desk and Tencent, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trade Desk | 3 | 12 | 20 | 0 | 2.49 |
| Tencent | 0 | 0 | 1 | 0 | 3.00 |
Valuation & Earnings
This table compares Trade Desk and Tencent”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trade Desk | $2.44 billion | 9.03 | $393.08 million | $0.83 | 54.40 |
| Tencent | $91.85 billion | 8.22 | $27.00 billion | $3.09 | 26.63 |
Tencent has higher revenue and earnings than Trade Desk. Tencent is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trade Desk and Tencent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trade Desk | 15.57% | 15.19% | 7.17% |
| Tencent | 29.55% | 19.06% | 11.17% |
Volatility and Risk
Trade Desk has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Tencent has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.
About Trade Desk
The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.
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.
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