LivePerson (NASDAQ:LPSN) versus Tencent (OTCMKTS:TCEHY) Head to Head Review

LivePerson (NASDAQ:LPSN) and Tencent (OTCMKTS:TCEHY) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares LivePerson and Tencent”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivePerson	$243.74 million	0.12	-$67.23 million	($13.05)	-0.19
Tencent	$104.58 billion	5.53	$31.28 billion	$3.38	18.79

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

Volatility and Risk

LivePerson has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Tencent has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

79.8% of LivePerson shares are owned by institutional investors. Comparatively, 0.0% of Tencent shares are owned by institutional investors. 2.0% of LivePerson shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for LivePerson and Tencent, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivePerson	1	1	0	0	1.50
Tencent	0	1	2	1	3.00

Tencent has a consensus price target of $102.00, indicating a potential upside of 60.63%. Given Tencent’s stronger consensus rating and higher possible upside, analysts clearly believe Tencent is more favorable than LivePerson.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LivePerson	-27.58%	N/A	-8.06%
Tencent	29.92%	19.18%	11.46%

Summary

Tencent beats LivePerson on 12 of the 15 factors compared between the two stocks.

About LivePerson

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

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.