Contrasting HeartCore Enterprises (NASDAQ:HTCR) and HUYA (NYSE:HUYA)

HeartCore Enterprises (NASDAQ:HTCR) and HUYA (NYSE:HUYA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HeartCore Enterprises	-0.62%	141.93%	46.22%
HUYA	-2.45%	1.35%	0.93%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for HeartCore Enterprises and HUYA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartCore Enterprises	0	0	0	0	0.00
HUYA	0	5	1	0	2.17

HUYA has a consensus price target of $4.5667, suggesting a potential upside of 37.55%. Given HUYA’s stronger consensus rating and higher possible upside, analysts plainly believe HUYA is more favorable than HeartCore Enterprises.

Dividends

HeartCore Enterprises pays an annual dividend of $0.02 per share and has a dividend yield of 3.9%. HUYA pays an annual dividend of $2.86 per share and has a dividend yield of 86.1%. HeartCore Enterprises pays out -200.0% of its earnings in the form of a dividend. HUYA pays out -3,177.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HUYA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

HeartCore Enterprises has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, HUYA has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

1.7% of HeartCore Enterprises shares are held by institutional investors. Comparatively, 23.2% of HUYA shares are held by institutional investors. 57.4% of HeartCore Enterprises shares are held by company insiders. Comparatively, 1.2% of HUYA shares are held by company 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.

Earnings and Valuation

This table compares HeartCore Enterprises and HUYA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$30.41 million	0.39	-$1.48 million	($0.01)	-51.30
HUYA	$832.84 million	0.90	-$6.57 million	($0.09)	-36.89

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

Summary

HUYA beats HeartCore Enterprises on 9 of the 16 factors compared between the two stocks.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.

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.