Contrasting HUYA (NYSE:HUYA) and Embracer Group AB (publ) (OTCMKTS:THQQF)

HUYA (NYSE:HUYA) and Embracer Group AB (publ) (OTCMKTS:THQQF) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

23.2% of HUYA shares are owned by institutional investors. 1.2% of HUYA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares HUYA and Embracer Group AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUYA	$929.83 million	0.58	-$16.10 million	($0.06)	-40.25
Embracer Group AB (publ)	N/A	N/A	N/A	N/A	N/A

Embracer Group AB (publ) has lower revenue, but higher earnings than HUYA.

Analyst Recommendations

This is a summary of current ratings and price targets for HUYA and Embracer Group AB (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUYA	1	1	0	1	2.33
Embracer Group AB (publ)	0	0	0	0	0.00

HUYA presently has a consensus price target of $3.45, indicating a potential upside of 42.86%. Given HUYA’s stronger consensus rating and higher possible upside, research analysts clearly believe HUYA is more favorable than Embracer Group AB (publ).

Profitability

This table compares HUYA and Embracer Group AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HUYA	-1.76%	0.40%	0.29%
Embracer Group AB (publ)	N/A	N/A	N/A

Summary

HUYA beats Embracer Group AB (publ) on 8 of the 9 factors compared between the two stocks.

About HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.

About Embracer Group AB (publ)

Embracer Group AB (publ), together with its subsidiaries, develops and publishes PC, console, mobile, VR, and board games for the games market worldwide. The company also publishes films and comic books, as well as engages in the trading of card games. It distributes games through retailers, physical stores, and digital distributors. The company was formerly known as THQ Nordic AB (publ) and changed its name to Embracer Group AB (publ) in October 2019. Embracer Group AB (publ) was founded in 1990 and is headquartered in Karlstad, Sweden.