Contrasting Tencent (OTCMKTS:TCEHY) and Rediff.com India (OTCMKTS:REDFY)

Rediff.com India (OTCMKTS:REDFY) and Tencent (OTCMKTS:TCEHY) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Rediff.com India and Tencent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rediff.com India	0	0	0	0	0.00
Tencent	0	2	2	0	2.50

Tencent has a consensus target price of $106.00, suggesting a potential upside of 82.70%. Given Tencent’s stronger consensus rating and higher probable upside, analysts plainly believe Tencent is more favorable than Rediff.com India.

Valuation and Earnings

This table compares Rediff.com India and Tencent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rediff.com India	N/A	N/A	N/A	N/A	N/A
Tencent	$104.58 billion	5.04	$31.28 billion	$3.65	15.90

Tencent has higher revenue and earnings than Rediff.com India.

Risk and Volatility

Rediff.com India has a beta of 15.22, suggesting that its share price is 1,422% more volatile than the S&P 500. Comparatively, Tencent has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Profitability

This table compares Rediff.com India and Tencent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rediff.com India	N/A	N/A	N/A
Tencent	29.83%	19.98%	12.03%

Institutional and Insider Ownership

0.0% of Tencent shares are owned by institutional investors. 70.7% of Rediff.com India shares are owned by company 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.

Summary

Tencent beats Rediff.com India on 8 of the 10 factors compared between the two stocks.

About Rediff.com India

Rediff.com India Limited engages in the online business in India and to the global Indian community. The company delivers news and information, enterprise email services, online shopping marketplace, and internet-based local TV advertising platform; and online advertising services. Its websites consist of information relating to sports and cricket; life style and movies; content on news, business, and finance; and search facilities, as well as a range of community features, including as e-mail and shopping. The company delivers its services on PCs, tablets, and various mobile platforms. Rediff.com India Limited was incorporated in 1996 and is headquartered in Mumbai, India.

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.