Vivid Seats (NASDAQ:SEAT) vs. Tencent (OTCMKTS:TCEHY) Financial Contrast

Vivid Seats (NASDAQ:SEAT) and Tencent (OTCMKTS:TCEHY) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares Vivid Seats and Tencent”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivid Seats	$570.78 million	0.07	-$429.30 million	($45.51)	-0.08
Tencent	$104.58 billion	4.62	$31.28 billion	$3.65	14.55

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

Analyst Ratings

This is a summary of current ratings and target prices for Vivid Seats and Tencent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vivid Seats	2	6	2	0	2.00
Tencent	0	2	2	0	2.50

Vivid Seats presently has a consensus price target of $10.27, indicating a potential upside of 191.67%. Tencent has a consensus price target of $106.00, indicating a potential upside of 99.59%. Given Vivid Seats’ higher probable upside, equities analysts plainly believe Vivid Seats is more favorable than Tencent.

Risk & Volatility

Vivid Seats has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Tencent has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Profitability

This table compares Vivid Seats and Tencent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vivid Seats	-60.26%	-211.26%	0.91%
Tencent	29.83%	19.83%	11.76%

Institutional and Insider Ownership

39.9% of Vivid Seats shares are held by institutional investors. Comparatively, 0.0% of Tencent shares are held by institutional investors. 60.5% of Vivid Seats shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Tencent beats Vivid Seats on 9 of the 13 factors compared between the two stocks.

About Vivid Seats

Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for sports, concerts, theater events, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces; and Vivid Picks daily fantasy sports that allows users to partake in contests by making picks from various sport and player matchups. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.

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.