Critical Survey: Criteo (NASDAQ:CRTO) vs. HUYA (NYSE:HUYA)

HUYA (NYSE:HUYA) and Criteo (NASDAQ:CRTO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Profitability

This table compares HUYA and Criteo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HUYA	-2.45%	1.35%	0.93%
Criteo	7.10%	16.91%	8.53%

Analyst Recommendations

This is a summary of recent ratings and price targets for HUYA and Criteo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUYA	0	6	1	0	2.14
Criteo	1	3	5	0	2.44

HUYA presently has a consensus price target of $4.57, indicating a potential upside of 29.55%. Criteo has a consensus price target of $40.00, indicating a potential upside of 72.94%. Given Criteo’s stronger consensus rating and higher possible upside, analysts plainly believe Criteo is more favorable than HUYA.

Volatility & Risk

HUYA has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Criteo has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Earnings & Valuation

This table compares HUYA and Criteo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUYA	$6.11 billion	0.13	-$6.57 million	($0.09)	-39.17
Criteo	$1.93 billion	0.69	$111.57 million	$2.39	9.68

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

Institutional & Insider Ownership

23.2% of HUYA shares are owned by institutional investors. Comparatively, 94.3% of Criteo shares are owned by institutional investors. 1.2% of HUYA shares are owned by insiders. Comparatively, 1.7% of Criteo shares are owned 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.

Summary

Criteo beats HUYA on 12 of the 14 factors compared between the two stocks.

About HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.

About Criteo

Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.