Head to Head Review: Tencent (OTC:TCEHY) versus NV5 Global (NASDAQ:NVEE)

Tencent (OTC:TCEHY) and NV5 Global (NASDAQ:NVEE) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Earnings and Valuation

This table compares Tencent and NV5 Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tencent	$86.17 billion	5.92	$16.28 billion	$2.48	22.31
NV5 Global	$861.74 million	1.37	$44.61 million	$0.56	32.21

Tencent has higher revenue and earnings than NV5 Global. Tencent is trading at a lower price-to-earnings ratio than NV5 Global, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Tencent and NV5 Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent	0	0	0	0	0.00
NV5 Global	0	1	1	0	2.50

NV5 Global has a consensus price target of $28.75, indicating a potential upside of 58.66%. Given NV5 Global’s stronger consensus rating and higher probable upside, analysts clearly believe NV5 Global is more favorable than Tencent.

Insider & Institutional Ownership

0.0% of Tencent shares are held by institutional investors. Comparatively, 75.5% of NV5 Global shares are held by institutional investors. 12.4% of NV5 Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tencent and NV5 Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tencent	26.41%	19.82%	11.10%
NV5 Global	3.86%	9.45%	6.13%

Volatility and Risk

Tencent has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, NV5 Global has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

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 NV5 Global

NV5 Global, Inc. provides technology, conformity assessment, consulting solutions, and software applications to public and private sector clients in the infrastructure, utility services, construction, real estate, environmental, and geospatial markets in the United States and internationally. It operates through three segments: Infrastructure; Building, Technology & Sciences; and Geospatial Solutions. The company offers site selection and planning, design, water resources, structural engineering, land development, surveying, power delivery, building code compliance, and other services. It is also involved in the construction of highways, bridges and tunnels; development of rail and light rail systems; provision of services related to street and roadway construction; and construction materials testing and engineering, geotechnical engineering and consulting, and forensic consulting services. In addition, the company provides governmental outsourcing and consulting, and technical outsourcing services; and geospatial data analytic and mapping services, as well as remote sensing services. Further, it offers mechanical, electrical, and plumbing design; commissioning; energy performance, management, and optimization; climate change and reducing CO2 emissions; building program management; acoustical design consulting; and audiovisualsecurity and surveillanceinformation technologydata center services. Additionally, the company provides various services, such as investigating and analyzing environmental conditions, and recommending corrective measures and procedures; occupational health and safety services; radiation exposure and protection, and nuclear safety and industrial hygiene analyses services; hydrogeological modeling and environmental programs. The company was formerly known as NV5 Holdings, Inc. and changed its name to NV5 Global, Inc. in December 2015. NV5 Global, Inc. was founded in 1949 and is headquartered in Hollywood, Florida.