Tencent (OTCMKTS:TCEHY) & Powell Max (NASDAQ:PMAX) Critical Analysis

Tencent (OTCMKTS:TCEHY) and Powell Max (NASDAQ:PMAX) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Tencent and Powell Max’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tencent	24.22%	19.06%	10.54%
Powell Max	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Tencent and Powell Max, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent	0	0	1	1	3.50
Powell Max	0	0	0	0	0.00

Tencent presently has a consensus target price of $46.00, suggesting a potential downside of 6.77%. Given Tencent’s stronger consensus rating and higher probable upside, research analysts plainly believe Tencent is more favorable than Powell Max.

Earnings and Valuation

This table compares Tencent and Powell Max”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tencent	$86.17 billion	5.28	$16.28 billion	$2.48	19.90
Powell Max	N/A	N/A	N/A	N/A	N/A

Tencent has higher revenue and earnings than Powell Max.

Insider & Institutional Ownership

0.0% of Tencent shares are owned by institutional investors. 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 Powell Max on 9 of the 9 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 Powell Max

Powell Max Limited is a financial communications services provider. Powell Max Limited is based in JERSEY CITY, N.J.