Cineverse (NASDAQ:CNVS – Get Free Report) and Tencent Music Entertainment Group (NYSE:TME – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Volatility and Risk
Cineverse has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Tencent Music Entertainment Group has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Profitability
This table compares Cineverse and Tencent Music Entertainment Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cineverse | 3.89% | 10.12% | 4.38% |
| Tencent Music Entertainment Group | 33.72% | 10.75% | 8.39% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cineverse | 0 | 0 | 2 | 0 | 3.00 |
| Tencent Music Entertainment Group | 0 | 0 | 9 | 1 | 3.10 |
Cineverse presently has a consensus price target of $7.25, suggesting a potential upside of 42.16%. Tencent Music Entertainment Group has a consensus price target of $24.4714, suggesting a potential downside of 4.15%. Given Cineverse’s higher probable upside, research analysts clearly believe Cineverse is more favorable than Tencent Music Entertainment Group.
Institutional & Insider Ownership
8.2% of Cineverse shares are owned by institutional investors. Comparatively, 24.3% of Tencent Music Entertainment Group shares are owned by institutional investors. 14.7% of Cineverse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Cineverse and Tencent Music Entertainment Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cineverse | $78.18 million | 1.12 | $3.60 million | $0.08 | 63.75 |
| Tencent Music Entertainment Group | $3.89 billion | 11.26 | $924.18 million | $0.91 | 28.05 |
Tencent Music Entertainment Group has higher revenue and earnings than Cineverse. Tencent Music Entertainment Group is trading at a lower price-to-earnings ratio than Cineverse, indicating that it is currently the more affordable of the two stocks.
Summary
Tencent Music Entertainment Group beats Cineverse on 11 of the 15 factors compared between the two stocks.
About Cineverse
Cineverse Corp. operates as a streaming technology and entertainment company. The company operates in two segments, Cinema Equipment, and Content and Entertainment. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels; and offers monitoring, billing, collection, and verification services. It entertains consumers worldwide by providing premium feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.
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.
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