Financial Contrast: Tencent (OTC:TCEHY) and Performant Healthcare, Inc. – Common Stock (NASDAQ:PHLT)

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

Insider & Institutional Ownership

77.2% of Performant Healthcare, Inc. – Common Stock shares are held by institutional investors. Comparatively, 0.0% of Tencent 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Performant Healthcare, Inc. – Common Stock and Tencent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Performant Healthcare, Inc. – Common Stock	0	0	0	1	4.00
Tencent	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Performant Healthcare, Inc. – Common Stock	-6.74%	-10.19%	-7.83%
Tencent	26.41%	19.82%	11.10%

Earnings & Valuation

This table compares Performant Healthcare, Inc. – Common Stock and Tencent”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Performant Healthcare, Inc. – Common Stock	$122.98 million	1.57	-$7.52 million	($0.13)	-18.92
Tencent	$86.17 billion	6.13	$16.28 billion	$2.85	20.14

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.

Volatility & Risk

Performant Healthcare, Inc. – Common Stock has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500. Comparatively, Tencent has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Summary

Tencent beats Performant Healthcare, Inc. – Common Stock on 9 of the 13 factors compared between the two stocks.

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.

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.