WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) and Square Enix (OTCMKTS:SQNXF – Get Free Report) are both communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Valuation & Earnings
This table compares WEBTOON Entertainment and Square Enix”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WEBTOON Entertainment | $1.38 billion | 0.88 | -$345.93 million | ($2.63) | -3.43 |
| Square Enix | $1.98 billion | 3.58 | $195.47 million | $0.75 | 26.16 |
Square Enix has higher revenue and earnings than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than Square Enix, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
WEBTOON Entertainment has a beta of 2.65, suggesting that its stock price is 165% more volatile than the S&P 500. Comparatively, Square Enix has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for WEBTOON Entertainment and Square Enix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WEBTOON Entertainment | 1 | 5 | 1 | 0 | 2.00 |
| Square Enix | 0 | 0 | 0 | 1 | 4.00 |
WEBTOON Entertainment presently has a consensus target price of $10.88, indicating a potential upside of 20.70%. Given WEBTOON Entertainment’s higher possible upside, equities research analysts plainly believe WEBTOON Entertainment is more favorable than Square Enix.
Profitability
This table compares WEBTOON Entertainment and Square Enix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WEBTOON Entertainment | -25.09% | 2.10% | 1.60% |
| Square Enix | N/A | N/A | N/A |
Summary
Square Enix beats WEBTOON Entertainment on 8 of the 13 factors compared between the two stocks.
About WEBTOON Entertainment
WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.
About Square Enix
Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.
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