Getty Images (NYSE:GETY – Get Free Report) and Tencent (OTCMKTS:TCEHY – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
45.8% of Getty Images shares are held by institutional investors. Comparatively, 0.0% of Tencent shares are held by institutional investors. 9.3% of Getty Images shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Getty Images and Tencent”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Getty Images | $981.29 million | 0.10 | -$206.12 million | ($0.39) | -0.62 |
| Tencent | $104.58 billion | 5.05 | $31.28 billion | $3.65 | 15.91 |
Tencent has higher revenue and earnings than Getty Images. Getty Images 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
Getty Images has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500. Comparatively, Tencent has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Getty Images and Tencent, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Getty Images | 2 | 3 | 1 | 0 | 1.83 |
| Tencent | 1 | 1 | 2 | 0 | 2.25 |
Getty Images presently has a consensus target price of $3.92, suggesting a potential upside of 1,521.90%. Tencent has a consensus target price of $106.00, suggesting a potential upside of 82.57%. Given Getty Images’ higher probable upside, research analysts clearly believe Getty Images is more favorable than Tencent.
Profitability
This table compares Getty Images and Tencent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Getty Images | -16.24% | -26.82% | -5.25% |
| Tencent | 29.83% | 19.98% | 12.03% |
Summary
Tencent beats Getty Images on 10 of the 14 factors compared between the two stocks.
About Getty Images
Getty Images Holdings, Inc. offers creative and editorial visual content solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Its products include Getty Images that offers creative and editorial content including stills, music and video which focuses on corporate, agency, and media customers; iStock.com, an e-commerce offering where customers have access to creative stills and video; Unsplash.com, a platform offering free stock photo downloads and paid subscriptions targeted to the high-growth prosumer and semi-professional creator segments; and Unsplash+ that provides access to unique model released content with expanded legal protections. In addition, it maintains privately-owned photographic archives covering news, sport, and entertainment, as well as variety of subjects, including lifestyle, business, science, health, wellness, beauty, sports, transportation, and travel. Further, the company provides music licensing, and digital asset management and distribution services. It serves media outlets, advertising agencies and corporations, individual creators, and prosumers. The company was formerly known as Getty Images, Inc. Getty Images Holdings, Inc. was founded in 1995 and is headquartered in Seattle, Washington.
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.
Receive News & Ratings for Getty Images Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Getty Images and related companies with MarketBeat.com's FREE daily email newsletter.
