Analyzing trivago (NASDAQ:TRVG) & Tencent (OTC:TCTZF)

trivago (NASDAQ:TRVG) and Tencent (OTC:TCTZF) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
trivago	-41.42%	1.30%	0.73%
Tencent	N/A	N/A	N/A

Institutional and Insider Ownership

4.5% of trivago shares are owned by institutional investors. Comparatively, 18.3% of Tencent shares are owned by institutional investors. 6.5% of trivago shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for trivago and Tencent, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
trivago	0	3	1	0	2.25
Tencent	0	0	0	0	N/A

trivago presently has a consensus price target of $2.68, suggesting a potential upside of 64.11%. Given trivago’s higher probable upside, analysts plainly believe trivago is more favorable than Tencent.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
trivago	$469.55 million	0.24	-$178.01 million	($2.82)	-0.58
Tencent	N/A	N/A	N/A	$2.34	22.91

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

Summary

trivago beats Tencent on 6 of the 10 factors compared between the two stocks.

About trivago

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.

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.