Contrasting Kingsoft (KSFTF) and Its Rivals

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

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 18.8% and pay out 80.1% of their earnings in the form of a dividend.

Institutional and Insider 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Kingsoft and its peers’ 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%

Earnings & Valuation

This table compares Kingsoft and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kingsoft	N/A	N/A	5.80
Kingsoft Competitors	$5.60 billion	$74.17 million	13.53

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Kingsoft and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingsoft	1	0	0	0	1.00
Kingsoft Competitors	1775	4370	9408	242	2.51

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

Summary

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

About Kingsoft

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.