Analyzing Kingsoft (KSFTF) & Its Peers

Kingsoft (OTCMKTS:KSFTF) is one of 188 public companies in the “Entertainment” industry, but how does it weigh in compared to its rivals? We will compare Kingsoft to related businesses based on the strength of its risk, institutional ownership, dividends, profitability, earnings, analyst recommendations and valuation.

Profitability

This table compares Kingsoft and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingsoft	N/A	N/A	N/A
Kingsoft Competitors	8.57%	-60.11%	-3.13%

Insider & Institutional Ownership

6.3% of Kingsoft shares are owned by institutional investors. Comparatively, 35.6% of shares of all “Entertainment” companies are owned by institutional investors. 24.2% of shares of all “Entertainment” companies are owned 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Kingsoft and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft	1	0	0	0	1.00
Kingsoft Competitors	1775	4371	9408	242	2.51

As a group, “Entertainment” companies have a potential upside of 22.74%. Given Kingsoft’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Kingsoft has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Kingsoft and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kingsoft	N/A	N/A	5.80
Kingsoft Competitors	$4.10 billion	$74.17 million	13.64

Kingsoft’s rivals have higher revenue and earnings than Kingsoft. Kingsoft is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Kingsoft pays an annual dividend of $0.10 per share and has a dividend yield of 3.0%. Kingsoft pays out 17.2% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 19.0% and pay out 78.9% of their earnings in the form of a dividend.

Summary

Kingsoft rivals beat Kingsoft on 10 of the 13 factors compared.

Kingsoft Company Profile

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.