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Critical Review: Tech Data (NASDAQ:TECD) & KINGDEE INTL SO/ADR (KGDEY)


Tech Data (NASDAQ:TECD) and KINGDEE INTL SO/ADR (OTCMKTS:KGDEY) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares Tech Data and KINGDEE INTL SO/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tech Data 0.59% 13.92% 3.30%
KINGDEE INTL SO/ADR N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings for Tech Data and KINGDEE INTL SO/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tech Data 1 1 4 0 2.50
KINGDEE INTL SO/ADR 0 0 0 0 N/A

Tech Data presently has a consensus target price of $102.83, indicating a potential upside of 7.61%. Given Tech Data’s higher possible upside, equities analysts plainly believe Tech Data is more favorable than KINGDEE INTL SO/ADR.

Dividends

KINGDEE INTL SO/ADR pays an annual dividend of $0.18 per share and has a dividend yield of 0.2%. Tech Data does not pay a dividend.

Volatility and Risk

Tech Data has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, KINGDEE INTL SO/ADR has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Valuation and Earnings

This table compares Tech Data and KINGDEE INTL SO/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tech Data $36.78 billion 0.10 $116.64 million $9.11 10.49
KINGDEE INTL SO/ADR $340.91 million 7.82 $45.88 million N/A N/A

Tech Data has higher revenue and earnings than KINGDEE INTL SO/ADR.

Institutional and Insider Ownership

99.9% of Tech Data shares are owned by institutional investors. 1.1% of Tech Data shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Tech Data beats KINGDEE INTL SO/ADR on 10 of the 12 factors compared between the two stocks.

Tech Data Company Profile

Tech Data Corporation engages in the wholesale distribution of technology products. It offers endpoint portfolio solutions, including PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, and consumer electronics; and advanced portfolio solutions, such as storage, networking, servers, advanced technology software, and converged and hyper-converged infrastructure, as well as specialized solutions. The company serves value-added resellers, direct marketers, retailers, and corporate resellers. Tech Data Corporation sells its products to customers in approximately 100 countries in North America, South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company was founded in 1974 and is headquartered in Clearwater, Florida.

KINGDEE INTL SO/ADR Company Profile

Kingdee International Software Group Company Limited, an investment holding company, develops, manufactures, markets, and sells enterprise management software products. The company operates through ERP Business, Cloud Services Business, and Others segments. The ERP Business segment is involved in the sale and implementation of enterprise management software; provision of other related services; sale of hardware related services to enterprise management software arrangements; and sale of middleware software. The Cloud Services Business segment provides e-commerce and other online management services. The Others segment operates investment properties comprising office buildings. The company also provides software-related technical services, as well as online financial services; develops, designs, manufactures, and sells hardware products; and develops Internet and online pay technology. It serves corporates, hospitals, and government organizations worldwide. The company was founded in 1991 and is headquartered in Shenzhen, the People’s Republic of China.

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