Analyzing Universal Music Group (OTCMKTS:UNVGY) and Paramount Skydance (NASDAQ:PSKY)

Universal Music Group (OTCMKTS:UNVGY) and Paramount Skydance (NASDAQ:PSKY) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Valuation and Earnings

This table compares Universal Music Group and Paramount Skydance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Music Group	N/A	N/A	N/A	N/A	N/A
Paramount Skydance	$29.21 billion	0.39	-$6.19 billion	($0.03)	-566.67

Universal Music Group has higher earnings, but lower revenue than Paramount Skydance.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Universal Music Group and Paramount Skydance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Music Group	0	0	0	0	0.00
Paramount Skydance	5	2	0	0	1.29

Paramount Skydance has a consensus target price of $10.80, suggesting a potential downside of 36.47%. Given Paramount Skydance’s stronger consensus rating and higher possible upside, analysts clearly believe Paramount Skydance is more favorable than Universal Music Group.

Insider and Institutional Ownership

73.0% of Paramount Skydance shares are owned by institutional investors. 0.4% of Paramount Skydance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Universal Music Group and Paramount Skydance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Music Group	N/A	N/A	N/A
Paramount Skydance	-0.05%	4.51%	1.68%

Summary

Paramount Skydance beats Universal Music Group on 7 of the 8 factors compared between the two stocks.

About Universal Music Group

Universal Music Group N.V. operates as a music company worldwide. It operates through Recorded Music, Music Publishing, and Merchandising & Other segments. The Recorded Music segment discovers and develops recording artists, as well as markets and promotes their music across various formats and platforms; and engages in the live events, sponsorship, film, and television operations. The Music Publishing segment discovers and develops songwriters, as well as owns and administers the copyright for musical compositions used in recordings, public performances, and related uses, such as films and advertisements. The Merchandising & Other segment produces and sells artist and other branded products through various sales channels, including fashion retail, concert touring, and internet, as well as offers brand rights management services. The company has approximately 3 million recordings, 4 million owned and administered titles, and 220 artists/brands, as well as owns approximately 50 labels covering various music genres. Universal Music Group N.V. was incorporated in 2020 and is headquartered in Hilversum, the Netherlands.

About Paramount Skydance

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.