Tencent (OTCMKTS:TCEHY) & ZoomInfo Technologies (NASDAQ:ZI) Financial Analysis

ZoomInfo Technologies (NASDAQ:ZI) and Tencent (OTCMKTS:TCEHY) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Volatility and Risk

ZoomInfo Technologies has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Tencent has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for ZoomInfo Technologies and Tencent, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	2	2	1	0	1.80
Tencent	1	1	2	0	2.25

ZoomInfo Technologies currently has a consensus target price of $5.50, suggesting a potential upside of 36.82%. Tencent has a consensus target price of $106.00, suggesting a potential upside of 96.66%. Given Tencent’s stronger consensus rating and higher probable upside, analysts plainly believe Tencent is more favorable than ZoomInfo Technologies.

Institutional and Insider Ownership

95.5% of ZoomInfo Technologies shares are held by institutional investors. Comparatively, 0.0% of Tencent shares are held by institutional investors. 9.0% of ZoomInfo Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	0.74%	12.05%	3.46%
Tencent	29.83%	19.98%	12.03%

Earnings & Valuation

This table compares ZoomInfo Technologies and Tencent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.21 billion	1.13	$107.30 million	$0.12	33.50
Tencent	$104.58 billion	4.69	$31.28 billion	$3.65	14.77

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

Summary

Tencent beats ZoomInfo Technologies on 10 of the 14 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.

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.