Analyzing Performant Healthcare, Inc. – Common Stock (NASDAQ:PHLT) and Tencent (OTCMKTS:TCEHY)

Tencent (OTCMKTS:TCEHY) and Performant Healthcare, Inc. – Common Stock (NASDAQ:PHLT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

0.0% of Tencent shares are held by institutional investors. Comparatively, 77.2% of Performant Healthcare, Inc. – Common Stock shares are held by institutional investors. 9.2% of Performant Healthcare, Inc. – Common Stock shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tencent and Performant Healthcare, Inc. – Common Stock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tencent	24.22%	19.06%	10.54%
Performant Healthcare, Inc. – Common Stock	-6.74%	-10.19%	-7.83%

Valuation and Earnings

This table compares Tencent and Performant Healthcare, Inc. – Common Stock”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tencent	$86.17 billion	6.91	$16.28 billion	$2.85	22.75
Performant Healthcare, Inc. – Common Stock	$122.98 million	1.83	-$7.52 million	($0.13)	-22.15

Tencent has higher revenue and earnings than Performant Healthcare, Inc. – Common Stock. Performant Healthcare, Inc. – Common Stock 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 Tencent and Performant Healthcare, Inc. – Common Stock, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent	0	0	0	1	4.00
Performant Healthcare, Inc. – Common Stock	0	0	0	1	4.00

Volatility & Risk

Tencent has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Performant Healthcare, Inc. – Common Stock has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

Summary

Tencent beats Performant Healthcare, Inc. – Common Stock on 9 of the 11 factors compared between the two stocks.

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.

About Performant Healthcare, Inc. – Common Stock

Performant Healthcare, Inc. engages in the provision of technology-enabled audit, recovery, customer care, and related analytics services. Its services help identify improper payments, and in some markets, restructure and recover delinquent or defaulted assets and improper payments for both government and private clients. The company was founded in 1976 and is headquartered in Plantation, FL.