Lyft (NASDAQ:LYFT) & Tencent (OTCMKTS:TCEHY) Head-To-Head Review

Lyft (NASDAQ:LYFT) and Tencent (OTCMKTS:TCEHY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lyft	2.40%	18.29%	2.38%
Tencent	29.87%	19.47%	11.52%

Institutional & Insider Ownership

83.1% of Lyft shares are held by institutional investors. Comparatively, 0.0% of Tencent shares are held by institutional investors. 3.1% of Lyft shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lyft	$5.79 billion	1.41	$22.78 million	$0.38	53.61
Tencent	$91.85 billion	7.75	$27.00 billion	$3.25	23.94

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

Risk & Volatility

Lyft has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Tencent has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Lyft and Tencent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lyft	1	24	11	0	2.28
Tencent	0	0	3	1	3.25

Lyft presently has a consensus target price of $22.92, indicating a potential upside of 12.53%. Tencent has a consensus target price of $102.00, indicating a potential upside of 31.09%. Given Tencent’s stronger consensus rating and higher probable upside, analysts clearly believe Tencent is more favorable than Lyft.

Summary

Tencent beats Lyft on 10 of the 15 factors compared between the two stocks.

About Lyft

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, 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.