Tencent (OTCMKTS:TCEHY – Get Free Report) and Getty Images (NYSE:GETY – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.
Profitability
This table compares Tencent and Getty Images’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tencent | 29.83% | 19.98% | 12.03% |
| Getty Images | -16.24% | -26.82% | -5.25% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Tencent and Getty Images, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tencent | 1 | 1 | 2 | 0 | 2.25 |
| Getty Images | 2 | 3 | 1 | 0 | 1.83 |
Earnings & Valuation
This table compares Tencent and Getty Images”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tencent | $104.58 billion | 4.80 | $31.28 billion | $3.65 | 15.12 |
| Getty Images | $978.00 million | 0.10 | -$206.12 million | ($0.39) | -0.62 |
Tencent has higher revenue and earnings than Getty Images. Getty Images is trading at a lower price-to-earnings ratio than Tencent, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.0% of Tencent shares are owned by institutional investors. Comparatively, 45.8% of Getty Images shares are owned by institutional investors. 9.3% of Getty Images shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Tencent has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Getty Images has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500.
Summary
Tencent beats Getty Images on 10 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 Getty Images
Getty Images Holdings, Inc. offers creative and editorial visual content solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Its products include Getty Images that offers creative and editorial content including stills, music and video which focuses on corporate, agency, and media customers; iStock.com, an e-commerce offering where customers have access to creative stills and video; Unsplash.com, a platform offering free stock photo downloads and paid subscriptions targeted to the high-growth prosumer and semi-professional creator segments; and Unsplash+ that provides access to unique model released content with expanded legal protections. In addition, it maintains privately-owned photographic archives covering news, sport, and entertainment, as well as variety of subjects, including lifestyle, business, science, health, wellness, beauty, sports, transportation, and travel. Further, the company provides music licensing, and digital asset management and distribution services. It serves media outlets, advertising agencies and corporations, individual creators, and prosumers. The company was formerly known as Getty Images, Inc. Getty Images Holdings, Inc. was founded in 1995 and is headquartered in Seattle, Washington.
Receive News & Ratings for Tencent Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tencent and related companies with MarketBeat.com's FREE daily email newsletter.
