Comparing Kingsoft (OTCMKTS:KSFTF) and Skillz (NYSE:SKLZ)

Kingsoft (OTCMKTS:KSFTF) and Skillz (NYSE:SKLZ) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Earnings and Valuation

This table compares Kingsoft and Skillz’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingsoft	N/A	N/A	N/A	$0.56	5.98
Skillz	$150.11 million	0.89	-$106.69 million	($5.11)	-1.22

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

Profitability

This table compares Kingsoft and Skillz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingsoft	N/A	N/A	N/A
Skillz	-47.40%	-40.12%	-21.34%

Analyst Ratings

This is a summary of current recommendations for Kingsoft and Skillz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft	0	0	0	0	N/A
Skillz	0	3	2	0	2.40

Skillz has a consensus target price of $10.25, suggesting a potential upside of 64.79%. Given Skillz’s higher possible upside, analysts plainly believe Skillz is more favorable than Kingsoft.

Insider & Institutional Ownership

6.3% of Kingsoft shares are held by institutional investors. Comparatively, 19.4% of Skillz shares are held by institutional investors. 22.7% of Skillz shares are held 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.

About Kingsoft

Kingsoft Corporation Limited engages in the entertainment and office software and services businesses in Mainland China, Hong Kong, and internationally. It operates in two segments, Office Software and Services, and Entertainment Software and Others. The company is involved in the research and development, operation, and distribution of games; the provision of PC games and mobile games services; and design, research and development, sale, and marketing of office software products and services of WPS Office. It also engages in the research and development of online games; marketing and operation of SMS, and wireless service of online games and application software; research and development, operation, and sale of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. Kingsoft Corporation Limited was founded in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.