DeNA (OTCMKTS:DNACF) and ZTE CORP/ADR (OTCMKTS:ZTCOY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Valuation and Earnings

This table compares DeNA and ZTE CORP/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DeNA $1.12 billion 2.45 $114.38 million $0.79 23.89
ZTE CORP/ADR $12.92 billion 0.92 -$992.22 million ($0.50) -11.40

DeNA has higher earnings, but lower revenue than ZTE CORP/ADR. ZTE CORP/ADR is trading at a lower price-to-earnings ratio than DeNA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DeNA and ZTE CORP/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DeNA 10.33% 5.00% 4.20%
ZTE CORP/ADR -1.05% -2.30% -0.60%

Volatility and Risk

DeNA has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500. Comparatively, ZTE CORP/ADR has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for DeNA and ZTE CORP/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DeNA 0 0 0 0 N/A
ZTE CORP/ADR 1 0 1 0 2.00

Insider & Institutional Ownership

0.0% of DeNA shares are held by institutional investors. Comparatively, 0.0% of ZTE CORP/ADR shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

DeNA beats ZTE CORP/ADR on 8 of the 11 factors compared between the two stocks.

DeNA Company Profile

DeNA Co., Ltd. develops and operates mobile and online services worldwide. The company operates Mobage, a platform that hosts free-to-play mobile games; Yahoo! Mobage, which offers games for PC browsers; and AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account. It also operates MOV, a taxi dispatch app; Anyca, a mobile app for peer-to-peer car sharing; Easy Ride, a robo-vehicle mobility service; and Robot Shuttle, a driverless shared transportation service. In addition, the company offers MYCODE, a direct-to-consumer genetic testing service; KenCoM, which supports health insurance societies to manage their members' health data; Aruite Otoku, a walking app; SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; and Pococha, a social live streaming community. Further, it provides Everystar, a mobile Website for user-generated novels; Manga Box, a weekly manga magazine app; MyAnimeList, a Website for anime fans; Hacka Doll, a news aggregation app specialized for fans of anime, manga, video games, and other otaku topics; Mobaoku that allows users to manage their auction items and bids from their mobile phones; Paygent that provides payment collection services for businesses; and Shumee-to Club, a social networking Website. Additionally, the company operates Yokohama DeNA Baystars, Yokohama DeNA Running Club, and Kawasaki Brave Thunders sports services. DeNA Co., Ltd. was founded in 1999 and is headquartered in Tokyo, Japan.

ZTE CORP/ADR Company Profile

ZTE Corporation provides telecommunications and information technology (IT) services worldwide. It operates through three segments: Carriers' Networks, Consumer Business, and Government and Corporate Business. The company offers wireless products, such as base stations, network optimization tools, controllers, GoTa products, network management products, and wireless infrastructure products; and bearer network products, including optical transmission, data transmission, and microwave products. It also provides cloud computing and IT products that include cloud infrastructure, cloud platform, and cloud hardware, as well as home media center products; and cloud core network products, which comprise 5G Cloud ServCore, packet core, IP multimedia subsystem and CS, user data convergence, and intelligent OSS products. In addition, the company offers fixed access products, including optical access and CPE products; and energy products, such as telecom energy, government and enterprise energy, and ZEGO IDC. Further, it provides consulting, customer support, and learning services. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.

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