Suggestion Box (OTCMKTS:SGTB) vs. Tencent (OTCMKTS:TCEHY) Critical Review

Suggestion Box (OTCMKTS:SGTB) and Tencent (OTCMKTS:TCEHY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Suggestion Box and Tencent, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suggestion Box	0	0	0	0	0.00
Tencent	0	0	2	0	3.00

Tencent has a consensus target price of $88.00, suggesting a potential upside of 3.92%. Given Tencent’s stronger consensus rating and higher probable upside, analysts clearly believe Tencent is more favorable than Suggestion Box.

Insider and Institutional Ownership

0.0% of Tencent shares are owned by institutional investors. 8.6% of Suggestion Box shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Suggestion Box and Tencent”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suggestion Box	N/A	N/A	N/A	N/A	N/A
Tencent	$91.85 billion	8.44	$27.00 billion	$3.09	27.40

Tencent has higher revenue and earnings than Suggestion Box.

Profitability

This table compares Suggestion Box and Tencent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suggestion Box	N/A	N/A	N/A
Tencent	29.55%	19.06%	11.17%

Summary

Tencent beats Suggestion Box on 8 of the 9 factors compared between the two stocks.

About Suggestion Box

Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child safe virtual world that offers games, edutainment, controlled chat, and multiple channels online streaming in one platform. The company was founded in 2004 and is based in Scottsdale, Arizona.

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.