Critical Comparison: Nebius Group (NASDAQ:NBIS) and HUYA (NYSE:HUYA)

Nebius Group (NASDAQ:NBIS) and HUYA (NYSE:HUYA) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Nebius Group and HUYA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nebius Group	0	0	2	0	3.00
HUYA	0	6	2	0	2.25

Nebius Group currently has a consensus target price of $55.00, indicating a potential upside of 110.16%. HUYA has a consensus target price of $5.68, indicating a potential upside of 77.07%. Given Nebius Group’s stronger consensus rating and higher probable upside, analysts plainly believe Nebius Group is more favorable than HUYA.

Valuation & Earnings

This table compares Nebius Group and HUYA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nebius Group	$117.50 million	52.44	$221.50 million	($0.57)	-45.91
HUYA	$6.08 billion	0.12	-$28.81 million	($0.03)	-106.83

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

Volatility and Risk

Nebius Group has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500. Comparatively, HUYA has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Nebius Group and HUYA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nebius Group	-4.76%	7.18%	4.00%
HUYA	-2.51%	0.30%	0.23%

Insider & Institutional Ownership

21.9% of Nebius Group shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 1.2% of HUYA shares are owned 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

Nebius Group beats HUYA on 7 of the 13 factors compared between the two stocks.

About Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.

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.