Tencent Music Entertainment Group (NYSE:TME – Get Free Report) and Cineverse (NASDAQ:CNVS – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Profitability
This table compares Tencent Music Entertainment Group and Cineverse’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tencent Music Entertainment Group | 33.72% | 10.75% | 8.39% |
| Cineverse | 3.89% | 9.98% | 4.53% |
Earnings & Valuation
This table compares Tencent Music Entertainment Group and Cineverse”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tencent Music Entertainment Group | $30.27 billion | 1.43 | $924.18 million | $0.91 | 27.79 |
| Cineverse | $78.18 million | 1.16 | $3.60 million | $0.08 | 59.38 |
Tencent Music Entertainment Group has higher revenue and earnings than Cineverse. Tencent Music Entertainment Group is trading at a lower price-to-earnings ratio than Cineverse, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Tencent Music Entertainment Group and Cineverse, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tencent Music Entertainment Group | 0 | 0 | 9 | 1 | 3.10 |
| Cineverse | 0 | 0 | 2 | 0 | 3.00 |
Tencent Music Entertainment Group currently has a consensus target price of $24.4714, suggesting a potential downside of 3.22%. Cineverse has a consensus target price of $7.25, suggesting a potential upside of 52.63%. Given Cineverse’s higher probable upside, analysts clearly believe Cineverse is more favorable than Tencent Music Entertainment Group.
Insider and Institutional Ownership
24.3% of Tencent Music Entertainment Group shares are owned by institutional investors. Comparatively, 8.2% of Cineverse shares are owned by institutional investors. 14.7% of Cineverse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Tencent Music Entertainment Group has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Cineverse has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Summary
Tencent Music Entertainment Group beats Cineverse on 11 of the 15 factors compared between the two stocks.
About Tencent Music Entertainment Group
Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform. In addition, it sells music-related merchandise; and artist-related merchandise, such as branded apparel, posters and art prints, and accessories and integrated and technology-driven music solutions that help IoT device manufacturers build and operate their branded music services on their IoT devices, as well as offers advertising services across its online karaoke platform and online music apps. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
About Cineverse
Cineverse Corp. operates as a streaming technology and entertainment company. The company operates in two segments, Cinema Equipment, and Content and Entertainment. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels; and offers monitoring, billing, collection, and verification services. It entertains consumers worldwide by providing premium feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.
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