Tencent (OTCMKTS:TCEHY – Get Free Report) and Bridgeline Digital (NASDAQ:BLIN – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
Profitability
This table compares Tencent and Bridgeline Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tencent | 29.55% | 19.72% | 11.48% |
| Bridgeline Digital | -16.81% | -25.79% | -16.08% |
Insider and Institutional Ownership
0.0% of Tencent shares are held by institutional investors. Comparatively, 15.1% of Bridgeline Digital shares are held by institutional investors. 23.5% of Bridgeline Digital shares are held 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tencent | $91.85 billion | 7.75 | $27.00 billion | $3.09 | 25.11 |
| Bridgeline Digital | $15.38 million | 1.13 | -$1.96 million | ($0.27) | -5.30 |
Tencent has higher revenue and earnings than Bridgeline Digital. Bridgeline Digital is trading at a lower price-to-earnings ratio than Tencent, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Tencent has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Bridgeline Digital has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Tencent and Bridgeline Digital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tencent | 0 | 0 | 1 | 1 | 3.50 |
| Bridgeline Digital | 0 | 0 | 1 | 0 | 3.00 |
Tencent presently has a consensus price target of $88.00, suggesting a potential upside of 13.42%. Bridgeline Digital has a consensus price target of $4.62, suggesting a potential upside of 223.08%. Given Bridgeline Digital’s higher possible upside, analysts clearly believe Bridgeline Digital is more favorable than Tencent.
Summary
Tencent beats Bridgeline Digital on 10 of the 14 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 Bridgeline Digital
Bridgeline Digital, Inc. operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers; Celebros Search, a commerce-oriented site search product that provides natural language processing with artificial intelligence; and Woorank, a Search Engine Optimization (SEO) audit tool that generates an instant performance audit of the site's technical, on-page, and off-page SEO. It also provides Bridgeline TruPresence, a web content management and eCommerce platform to support the needs of multi-unit organizations and franchises; Bridgeline Unbound, a technology suite that empower marketers to easily manage their digital experiences and create personalized customer journeys; and OrchestraCMS, a digital experience platform that enables development of custom solutions, third-party integrations, and delivery of digital transformation initiatives on the Salesforce platform. In addition, the company offers digital engagement services comprising digital strategy, web design and web development, usability engineering, information architecture, and SEO, as well as hosting services. It serves vertical markets, such as industrial distributors and wholesalers, franchises and enterprises, manufacturers, eCommerce retailers, health services and life sciences, technology, credit unions and banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was incorporated in 2000 and is based in Woburn, Massachusetts.
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