Head-To-Head Review: Square Enix (OTCMKTS:SQNXF) and Senmiao Technology (NASDAQ:AIHS)

Square Enix (OTCMKTS:SQNXF) and Senmiao Technology (NASDAQ:AIHS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Square Enix and Senmiao Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Square Enix	1	0	0	0	1.00
Senmiao Technology	0	0	0	0	0.00

Profitability

This table compares Square Enix and Senmiao Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Square Enix	5.92%	5.88%	4.72%
Senmiao Technology	-95.43%	-211.61%	-45.85%

Insider & Institutional Ownership

0.4% of Senmiao Technology shares are owned by institutional investors. 1.3% of Senmiao Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Square Enix has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Senmiao Technology has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Valuation and Earnings

This table compares Square Enix and Senmiao Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Square Enix	$2.13 billion	3.70	$161.13 million	$1.03	63.77
Senmiao Technology	$3.39 million	0.70	-$3.72 million	($3.20)	-0.67

Square Enix has higher revenue and earnings than Senmiao Technology. Senmiao Technology is trading at a lower price-to-earnings ratio than Square Enix, indicating that it is currently the more affordable of the two stocks.

Summary

Square Enix beats Senmiao Technology on 9 of the 12 factors compared between the two stocks.

About Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.

About Senmiao Technology

Senmiao Technology Limited engages in the automobile transaction and related services business in the People's Republic of China. It operates through two segments, Automobile Transaction and Related Services, and Online Ride-Hailing Platform Services. The company offers car rental services to individual customers; and auto finance solutions through financing leases. It also engages in automobile sales comprising sale of new purchased or used cars; and the provision of supporting services, as well as auto management and guarantee services provided to online ride-hailing drivers. In addition, the company provides new energy vehicles leasing, automobile purchase, and management services, such as ride-hailing driver training, assisting with a series of administrative procedures, and other consulting services, as well as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installation of GPS devices, ride-hailing driver qualification, and other administrative procedures. Further, it operates Xixingtianxia, an online ride-hailing platform that enables qualified ride-hailing drivers to provide transportation services mainly in Chengdu, Changsha, Guangzhou, and other 23 cities in China. The company was founded in 2014 and is based in Chengdu, the People's Republic of China.