Manchester United (NYSE:MANU – Get Free Report) and iQIYI (NASDAQ:IQ – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares Manchester United and iQIYI”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Manchester United | $677.65 million | 5.19 | -$57.64 million | ($0.33) | -61.77 |
| iQIYI | $25.99 billion | 0.04 | -$29.50 million | ($0.12) | -8.46 |
Volatility & Risk
Manchester United has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.
Institutional & Insider Ownership
23.3% of Manchester United shares are owned by institutional investors. Comparatively, 52.7% of iQIYI shares are owned by institutional investors. 68.6% of Manchester United shares are owned by insiders. Comparatively, 57.8% of iQIYI shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Manchester United and iQIYI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Manchester United | -6.36% | -12.22% | -1.32% |
| iQIYI | -3.24% | -6.29% | -1.78% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Manchester United and iQIYI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Manchester United | 1 | 0 | 0 | 0 | 1.00 |
| iQIYI | 1 | 4 | 1 | 0 | 2.00 |
iQIYI has a consensus price target of $1.73, indicating a potential upside of 70.44%. Given iQIYI’s stronger consensus rating and higher possible upside, analysts plainly believe iQIYI is more favorable than Manchester United.
Summary
iQIYI beats Manchester United on 10 of the 14 factors compared between the two stocks.
About Manchester United
Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
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