Metalpha Technology (NASDAQ:MATH) versus Tencent (OTCMKTS:TCEHY) Head to Head Review

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tencent	$104.58 billion	5.32	$31.28 billion	$3.38	18.03
Metalpha Technology	$44.57 million	0.94	$15.90 million	N/A	N/A

Tencent has higher revenue and earnings than Metalpha Technology.

Volatility and Risk

Tencent has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Metalpha Technology has a beta of -0.64, indicating that its share price is 164% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Tencent shares are held by institutional investors. Comparatively, 30.5% of Metalpha Technology shares are held by institutional investors. 5.9% of Metalpha Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tencent and Metalpha Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent	0	2	2	0	2.50
Metalpha Technology	1	0	0	0	1.00

Tencent presently has a consensus target price of $102.00, suggesting a potential upside of 67.41%. Given Tencent’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Tencent is more favorable than Metalpha Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tencent	29.92%	18.98%	11.39%
Metalpha Technology	N/A	N/A	N/A

Summary

Tencent beats Metalpha Technology on 10 of the 12 factors compared between the two stocks.

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 Metalpha Technology

Metalpha Technology Holding Limited, together with its subsidiaries, provides wealth management services in Hong Kong. The company offers digital asset-based wealth management services, which include issuing traditional financial and cryptocurrency derivative products to over-the-counter clients, providing crypto derivative market making services, and proprietary trading of digital assets and crypto derivative products; and securities advising and asset management services. It serves institutional investors and high-net-worth individuals. The company was formerly known as Dragon Victory International Limited and changed its name to Metalpha Technology Holding Limited in November 2022. The company was incorporated in 2015 and is headquartered in Wan Chai, Hong Kong.