Critical Survey: Criteo (NASDAQ:CRTO) and HUYA (NYSE:HUYA)

Criteo (NASDAQ:CRTO) and HUYA (NYSE:HUYA) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Valuation & Earnings

This table compares Criteo and HUYA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Criteo	$1.93 billion	0.64	$111.57 million	$2.39	8.97
HUYA	$832.84 million	0.87	-$6.57 million	($0.09)	-36.11

Criteo has higher revenue and earnings than HUYA. HUYA is trading at a lower price-to-earnings ratio than Criteo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Criteo and HUYA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Criteo	7.10%	16.91%	8.53%
HUYA	-2.45%	1.35%	0.93%

Risk and Volatility

Criteo has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, HUYA has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Insider & Institutional Ownership

94.3% of Criteo shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 1.7% of Criteo shares are owned by company insiders. Comparatively, 1.2% of HUYA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Criteo and HUYA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Criteo	1	4	5	0	2.40
HUYA	1	6	1	0	2.00

Criteo currently has a consensus price target of $40.00, suggesting a potential upside of 86.65%. HUYA has a consensus price target of $4.57, suggesting a potential upside of 40.51%. Given Criteo’s stronger consensus rating and higher probable upside, analysts clearly believe Criteo is more favorable than HUYA.

Summary

Criteo beats HUYA on 12 of the 14 factors compared between the two stocks.

About Criteo

Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.

About HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.