SMC Entertainment (OTCMKTS:SMCE) vs. Warner Music Group (NASDAQ:WMG) Head to Head Survey

SMC Entertainment (OTCMKTS:SMCE) and Warner Music Group (NASDAQ:WMG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Valuation & Earnings

This table compares SMC Entertainment and Warner Music Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC Entertainment	N/A	N/A	-$8.43 million	($0.01)	-0.06
Warner Music Group	$6.43 billion	2.74	$435.00 million	$0.57	59.25

Warner Music Group has higher revenue and earnings than SMC Entertainment. SMC Entertainment is trading at a lower price-to-earnings ratio than Warner Music Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for SMC Entertainment and Warner Music Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC Entertainment	0	0	0	0	0.00
Warner Music Group	0	10	8	1	2.53

Warner Music Group has a consensus target price of $33.8824, suggesting a potential upside of 0.33%. Given Warner Music Group’s stronger consensus rating and higher probable upside, analysts plainly believe Warner Music Group is more favorable than SMC Entertainment.

Insider and Institutional Ownership

96.9% of Warner Music Group shares are owned by institutional investors. 41.2% of SMC Entertainment shares are owned by insiders. Comparatively, 72.2% of Warner Music Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares SMC Entertainment and Warner Music Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SMC Entertainment	N/A	N/A	-10,392.01%
Warner Music Group	4.59%	39.95%	3.16%

Volatility and Risk

SMC Entertainment has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Warner Music Group has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Summary

Warner Music Group beats SMC Entertainment on 14 of the 14 factors compared between the two stocks.

About SMC Entertainment

SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.

About Warner Music Group

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics, and Warner Music Nashville. This segment markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. The Music Publishing segment owns and acquires rights to approximately one million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions. Its catalog includes approximately 150,000 songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. This segment also administers the music and soundtracks of various third-party television and film producers and studios. The company was founded in 1929 and is headquartered in New York, New York.