Analyzing MicroStrategy (NASDAQ:MSTR) and China Youzan (OTCMKTS:CHNVF)

China Youzan (OTCMKTS:CHNVF) and MicroStrategy (NASDAQ:MSTR) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a summary of recent recommendations for China Youzan and MicroStrategy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Youzan	0	0	0	0	N/A
MicroStrategy	0	0	5	0	3.00

MicroStrategy has a consensus target price of $1,473.00, suggesting a potential upside of 11.25%. Given MicroStrategy’s higher possible upside, analysts clearly believe MicroStrategy is more favorable than China Youzan.

Valuation & Earnings

This table compares China Youzan and MicroStrategy’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Youzan	N/A	N/A	N/A	N/A	N/A
MicroStrategy	$496.26 million	45.28	$429.12 million	$28.18	46.98

MicroStrategy has higher revenue and earnings than China Youzan.

Profitability

This table compares China Youzan and MicroStrategy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Youzan	N/A	N/A	N/A
MicroStrategy	86.47%	42.81%	12.58%

Insider and Institutional Ownership

72.0% of MicroStrategy shares are held by institutional investors. 13.2% of MicroStrategy shares are held by insiders. 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.

Summary

MicroStrategy beats China Youzan on 8 of the 8 factors compared between the two stocks.

About China Youzan

China Youzan Limited, an investment holding company, provides online and offline e-commerce solutions in the People's Republic of China, Japan, and Canada. It operates through three segments: Third Party Payment Services, Merchant Services, and Other. The company offers third party payment and related consultancy services; and an e-commerce platform with various Software as a Service (Saas) products and services. In addition, it provides a suite of SaaS products, such as Youzan WeiMall, Youzan Store, Youzan Chain, Youzan Beauty, and other SaaS products; wholesale and retail internet information services; and factoring and guarantee services, as well as operation services for merchants and retail solutions for beauty industries. The company was formerly known as China Innovationpay Group Limited and changed its name to China Youzan Limited in May 2018. China Youzan Limited was founded in 1995 and is headquartered in Wan Chai, Hong Kong.

About MicroStrategy

MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions. The company also provides MicroStrategy Support that helps customers achieve their system availability and usage goals through highly responsive troubleshooting and assistance; MicroStrategy Consulting, which provides architecture and implementation services to help customers realize their desired results; and MicroStrategy Education that offers free and paid learning options. In addition, it engages in the development of bitcoin. The company offers its services through direct sales force and channel partners. It serves the U.S. government, state and local governments, and government agencies, as well as a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.