Reviewing Kingsoft (OTCMKTS:KSFTF) & Manchester United (NYSE:MANU)

Manchester United (NYSE:MANU) and Kingsoft (OTCMKTS:KSFTF) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for Manchester United and Kingsoft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manchester United	1	0	0	0	1.00
Kingsoft	1	0	0	0	1.00

Insider and Institutional Ownership

23.3% of Manchester United shares are owned by institutional investors. Comparatively, 6.3% of Kingsoft shares are owned by institutional investors. 68.6% of Manchester United shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Manchester United and Kingsoft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manchester United	-2.67%	0.64%	0.07%
Kingsoft	N/A	N/A	N/A

Valuation and Earnings

This table compares Manchester United and Kingsoft”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manchester United	$862.42 million	4.60	-$42.74 million	($0.14)	-164.23
Kingsoft	N/A	N/A	N/A	$0.56	5.80

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

Summary

Manchester United beats Kingsoft on 5 of the 8 factors compared between the two stocks.

About Manchester United

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.

About Kingsoft

Kingsoft Corporation Limited engages in the entertainment and office software and services businesses in Mainland China, Hong Kong, and internationally. It operates in two segments, Office Software and Services, and Entertainment Software and Others. The company is involved in the research and development, operation, and distribution of games; the provision of PC games and mobile games services; and design, research and development, sale, and marketing of office software products and services of WPS Office. It also engages in the research and development of online games; marketing and operation of SMS, and wireless service of online games and application software; research and development, operation, and sale of office application software; marketing and operation of entertainment software products; and research, development, and distribution of consumer application software. Kingsoft Corporation Limited was founded in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.