Comparing Tencent Music Entertainment Group (NYSE:TME) & Keywords Studios (OTCMKTS:KYYWF)

Keywords Studios (OTCMKTS:KYYWF) and Tencent Music Entertainment Group (NYSE:TME) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Earnings & Valuation

This table compares Keywords Studios and Tencent Music Entertainment Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keywords Studios	N/A	N/A	N/A	N/A	N/A
Tencent Music Entertainment Group	$4.71 billion	3.17	$1.54 billion	$0.80	11.83

Tencent Music Entertainment Group has higher revenue and earnings than Keywords Studios.

Institutional & Insider Ownership

24.3% of Tencent Music Entertainment Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Keywords Studios and Tencent Music Entertainment Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keywords Studios	0	0	0	0	0.00
Tencent Music Entertainment Group	0	8	6	0	2.43

Tencent Music Entertainment Group has a consensus price target of $21.44, indicating a potential upside of 126.54%. Given Tencent Music Entertainment Group’s stronger consensus rating and higher probable upside, analysts plainly believe Tencent Music Entertainment Group is more favorable than Keywords Studios.

Profitability

This table compares Keywords Studios and Tencent Music Entertainment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keywords Studios	N/A	N/A	N/A
Tencent Music Entertainment Group	26.45%	11.20%	8.96%

Summary

Tencent Music Entertainment Group beats Keywords Studios on 8 of the 8 factors compared between the two stocks.

About Keywords Studios

Keywords Studios plc provides creative and technical services to the video game industry worldwide. The company offers art creation services related to the production of graphical art assets for inclusion in the video game, including concept art creation, as well as 2D and 3D art asset production and animation. It also provides marketing services, which include game trailers, marketing art and materials, PR, and brand campaign strategy services; software engineering services for developing video games; and audio services, such as script translation, actor selection, and talent management through pre-production, audio direction, recording, and post-production, as well as offers music licensing or music soundtracks selling services. In addition, the company provides functional testing services related to quality assurance services provided to game producers to ensure game functions; localization services related to translation and cultural adaptation of in-game text and audio scripts in various game platforms and genres; and localization testing services comprising testing the linguistic correctness and cultural acceptability of computer games. Further, it offers player support services related to the live operations support, which comprise community management, player support, and associated services to producers of games. The company serves game developers and publishers. Keywords Studios plc was founded in 1998 and is based in London, the United Kingdom.

About Tencent Music Entertainment Group

Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform. In addition, it sells music-related merchandise; and artist-related merchandise, such as branded apparel, posters and art prints, and accessories and integrated and technology-driven music solutions that help IoT device manufacturers build and operate their branded music services on their IoT devices, as well as offers advertising services across its online karaoke platform and online music apps. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.