Square Enix (OTCMKTS:SQNXF) vs. Xunlei (NASDAQ:XNET) Head-To-Head Comparison

Xunlei (NASDAQ:XNET) and Square Enix (OTCMKTS:SQNXF) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Risk and Volatility

Xunlei has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Square Enix has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Xunlei and Square Enix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	0	1	0	0	2.00
Square Enix	1	0	0	0	1.00

Profitability

This table compares Xunlei and Square Enix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xunlei	227.29%	1.41%	1.17%
Square Enix	N/A	N/A	N/A

Valuation and Earnings

This table compares Xunlei and Square Enix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xunlei	$460.43 million	0.85	$1.05 billion	$16.43	0.38
Square Enix	$2.13 billion	2.51	$161.13 million	$0.67	22.16

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

Insider and Institutional Ownership

5.1% of Xunlei shares are owned by institutional investors. 21.7% of Xunlei shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Xunlei beats Square Enix on 9 of the 12 factors compared between the two stocks.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.

About Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.