Better Buy: Tencent vs. JD.com – Motley Fool

Tencent (OTC:TCEHY) and JD.com (NASDAQ:JD) were both standout performers in the crowded Chinese tech sector this year.

Tencent’s stock rallied nearly 70% as it impressed investors with the robust growth of its advertising, social networking, gaming, and fintech businesses. JD’s stock soared 160% as its e-commerce revenues surged.

Tencent and JD are already joined at the hip. Tencent owns a 17.1% stake in JD, and JD operates online stores within Tencent’s WeChat. Both companies consider Alibaba (NYSE:BABA) to be a mutual adversary.

Shanghai's skyline on a rainy day.

Image source: Getty Images.

Does either Chinese tech giant still have room to run over the next year? Let’s compare their business models, growth rates, and valuations to find out.

Tencent: A jack of all trades

Tencent is the world’s largest video game publisher. Its online gaming revenue accounted for a third of its top line last quarter, and it publishes hit games like League of Legends, Honor of Kings, and PUBG Mobile.

Its owns WeChat, the largest mobile messaging platform in China with over 1.2 billion monthly active users (MAUs), and its older counterpart QQ, which served 648 million mobile MAUs last quarter. WeChat hosts millions of third-party Mini Programs, which allow users to buy products, hail rides, pay bills, order food, and more without ever leaving the app.

Tencent also owns Tencent Video, one of the largest video streaming platforms in China, and a big stake in Tencent Music, the
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