Head to Head Review: Tencent (OTCMKTS:TCEHY) vs. Uxin (NASDAQ:UXIN)

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

Institutional & Insider Ownership

0.0% of Tencent shares are owned by institutional investors. Comparatively, 22.4% of Uxin shares are owned by institutional investors. 62.9% of Uxin shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Tencent has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Uxin has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tencent and Uxin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent	0	2	2	0	2.50
Uxin	1	0	1	0	2.00

Tencent currently has a consensus price target of $102.00, indicating a potential upside of 63.46%. Uxin has a consensus price target of $4.50, indicating a potential upside of 48.51%. Given Tencent’s stronger consensus rating and higher possible upside, equities analysts plainly believe Tencent is more favorable than Uxin.

Earnings and Valuation

This table compares Tencent and Uxin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tencent	$104.58 billion	5.44	$31.28 billion	$3.38	18.46
Uxin	$190.40 million	2.99	-$11.18 million	($0.20)	-15.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tencent	29.92%	19.18%	11.46%
Uxin	-10.66%	N/A	-8.15%

Summary

Tencent beats Uxin on 11 of the 14 factors compared between the two stocks.

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.

About Uxin

Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.