Tencent Music Entertainment Group (NYSE:TME – Get Rating) and iHeartMedia (NASDAQ:IHRT – Get Rating) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Insider and Institutional Ownership
80.2% of iHeartMedia shares are held by institutional investors. 2.9% of iHeartMedia shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers 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 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Tencent Music Entertainment Group and iHeartMedia, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tencent Music Entertainment Group||two||6||two||0||2.00|
Tencent Music Entertainment Group presently has a consensus price target of $8.72, indicating a potential upside of 98.18%. iHeartMedia has a consensus price target of $15.50, indicating a potential upside of 56.88%. Given Tencent Music Entertainment Group’s higher possible upside, analysts plainly believe Tencent Music Entertainment Group is more favorable than iHeartMedia.
This table compares Tencent Music Entertainment Group and iHeartMedia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tencent Music Entertainment Group||9.01%||6.21%||4.72%|
Earnings and Valuation
This table compares Tencent Music Entertainment Group and iHeartMedia’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tencent Music Entertainment Group||$4.90 billion||1.51||$469.49 million||$0.26||16.92|
|iHeartMedia||$3.56 billion||0.40||-$159.20 million||$0.55||17.96|
Tencent Music Entertainment Group has higher revenue and earnings than iHeartMedia. Tencent Music Entertainment Group is trading at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the most affordable of the two stocks.
Tencent Music Entertainment Group beats iHeartMedia on 7 of the 13 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 and listen to music in personalized ways; and WeSing, which enables users to have fun by singing and interacting with friends, sharing their singing performances with friends, and discovering songs that others have sung. The company also operates Kugou Music, Kuwo Music, WeSing, QQ Music, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with those interested in their performance; and Kuwo Changting, an audio platform that offers users various audio content, including audio books, cross-talks, radio dramas, and other entertainment. In addition, it sells music-related merchandise, including Kugou headsets, smart speakers, WeSing karaoke microphones, and Hi-Fi systems; and offers online music event ticketing services, as well as services to smart device and automobile makers to build and operate music services on devices and vehicles. Tencent Music Entertainment Group has a strategic partnership with China Literature. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
iHeartMedia, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents approximately 120 syndicated radio programs and services to approximately 6,400 radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news through approximately 2,100 radio stations and 170 television affiliates, and Internet and mobile partnerships. As of December 31, 2021, this segment owned 863 radio stations, which included 249 AM and 614 FM radio stations. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web-based service for radio stations, digital-only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business. This segment also provides cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to approximately 10,000 radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. iHeartMedia, Inc. is headquartered in San Antonio, Texas.
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