DeNA (OTCMKTS:DNACF) and TIM Participacoes (NYSE:TSU) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
DeNA has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, TIM Participacoes has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
This table compares DeNA and TIM Participacoes’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TIM Participacoes pays an annual dividend of $0.41 per share and has a dividend yield of 2.6%. DeNA does not pay a dividend. TIM Participacoes pays out 51.3% of its earnings in the form of a dividend.
Insider & Institutional Ownership
0.0% of DeNA shares are owned by institutional investors. Comparatively, 14.9% of TIM Participacoes shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for DeNA and TIM Participacoes, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TIM Participacoes has a consensus target price of $18.25, suggesting a potential upside of 15.95%. Given TIM Participacoes’ higher probable upside, analysts clearly believe TIM Participacoes is more favorable than DeNA.
Earnings & Valuation
This table compares DeNA and TIM Participacoes’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TIM Participacoes||$3.21 billion||2.38||$386.64 million||$0.80||19.68|
TIM Participacoes has higher revenue and earnings than DeNA. DeNA is trading at a lower price-to-earnings ratio than TIM Participacoes, indicating that it is currently the more affordable of the two stocks.
TIM Participacoes beats DeNA on 10 of the 12 factors compared between the two stocks.
DeNA Co., Ltd. develops and operates mobile and online services worldwide. The company operates Mobage, a platform that hosts free-to-play mobile games; Yahoo! Mobage, which offers games for PC browsers; and AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account. It also operates MOV, a taxi dispatch app; Anyca, a mobile app for peer-to-peer car sharing; Easy Ride, a robo-vehicle mobility service; and Robot Shuttle, a driverless shared transportation service. In addition, the company offers MYCODE, a direct-to-consumer genetic testing service; KenCoM, which supports health insurance societies to manage their members’ health data; Aruite Otoku, a walking app; SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; and Pococha, a social live streaming community. Further, it provides Everystar, a mobile Website for user-generated novels; Manga Box, a weekly manga magazine app; MyAnimeList, a Website for anime fans; Hacka Doll, a news aggregation app specialized for fans of anime, manga, video games, and other otaku topics; Mobaoku that allows users to manage their auction items and bids from their mobile phones; Paygent that provides payment collection services for businesses; and Shumee-to Club, a social networking Website. Additionally, the company operates Yokohama DeNA Baystars, Yokohama DeNA Running Club, and Kawasaki Brave Thunders sports services. DeNA Co., Ltd. was founded in 1999 and is headquartered in Tokyo, Japan.
About TIM Participacoes
TIM Participações S.A. provides telecommunication services in Brazil. The company offers mobile voice and data, broadband Internet access, value-added, and other telecommunications services and products. It provides prepaid and postpaid services; value-added services, including short message services or text messaging, and multimedia messaging services; and insurance services. The company also sells various mobile handsets and accessories through its dealer network, which includes its own stores, exclusive franchises, and authorized dealers; and offers co-billing services to other telecommunication service providers. As of December 31, 2017, it served a subscriber base of 58.6 million customers; and had approximately 12.2 thousand points of sales, including 156 company owned stores, as well as had approximately 310 thousand points of sales to access prepaid phone services through supermarkets, newsstands, and other small retailers. The company was formerly known as Tele Celular Sul Participações S.A. and changed its name to TIM Participações S.A. in August 2004. The company was founded in 1998 and is headquartered in Rio de Janeiro, Brazil. TIM Participações S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.
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