Tencent Music Entertainment Group (NYSE:TME – Get Free Report) and Starz Entertainment (NASDAQ:STRZ – Get Free Report) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
Profitability
This table compares Tencent Music Entertainment Group and Starz Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tencent Music Entertainment Group | 26.27% | 11.53% | 8.87% |
| Starz Entertainment | -33.98% | -25.64% | -6.79% |
Valuation & Earnings
This table compares Tencent Music Entertainment Group and Starz Entertainment”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 | $4.71 billion | 2.59 | $1.54 billion | $0.81 | 9.54 |
| Starz Entertainment | $963.40 million | 0.41 | -$115.80 million | ($25.49) | -0.91 |
Tencent Music Entertainment Group has higher revenue and earnings than Starz Entertainment. Starz Entertainment is trading at a lower price-to-earnings ratio than Tencent Music Entertainment Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Tencent Music Entertainment Group and Starz Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tencent Music Entertainment Group | 0 | 10 | 3 | 0 | 2.23 |
| Starz Entertainment | 1 | 3 | 4 | 1 | 2.56 |
Tencent Music Entertainment Group currently has a consensus price target of $17.21, indicating a potential upside of 122.63%. Starz Entertainment has a consensus price target of $32.71, indicating a potential upside of 40.71%. Given Tencent Music Entertainment Group’s higher possible upside, analysts plainly believe Tencent Music Entertainment Group is more favorable than Starz Entertainment.
Risk & Volatility
Tencent Music Entertainment Group has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Starz Entertainment has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500.
Insider and Institutional Ownership
24.3% of Tencent Music Entertainment Group shares are owned by institutional investors. 22.6% of Starz Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Tencent Music Entertainment Group beats Starz Entertainment on 10 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 Starz Entertainment
Starz is a premium cable and streaming network owned by Starz Entertainment, which was formerly a part of Lionsgate. Starz had about 20 million subscribers in the U.S. and Canada as of Dec. 31, 2024. The company’s franchises include “Outlander” and “Power.”
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