Tencent Music Entertainment Group (NYSE: TME – Get an assessment) and iHeartMedia (NASDAQ: IHRT – Get an assessment) are both IT and technology companies, but which stock is superior? We will compare the two companies 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 indicates that endowments, large fund 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 its stock price is 29% less volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 1.76, suggesting its stock price is 76 % more volatile than the S&P 500.
This is a summary of recent valuations and price targets for Tencent Music Entertainment Group and iHeartMedia, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Tencent Music Entertainment Group||2||6||2||0||2.00|
Tencent Music Entertainment Group currently 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%. Considering the higher possible rise of Tencent Music Entertainment Group, analysts clearly believe that Tencent Music Entertainment Group is more favorable than iHeartMedia.
This table compares the net margins, return on equity, and return on assets of Tencent Music Entertainment Group and iHeartMedia.
|Net margins||Return on equity||return on assets|
|Tencent Music Entertainment Group||9.01%||6.21%||4.72%|
Benefits and evaluation
This table compares the gross revenue, earnings per share, and valuation of Tencent Music Entertainment Group and iHeartMedia.
|Gross revenue||Price/sales ratio||Net revenue||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 profit than iHeartMedia. Tencent Music Entertainment Group trades at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the more affordable of the two stocks.
Tencent Music Entertainment Group beats iHeartMedia on 7 out of 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 which allow users to discover and listen to music in a personalized way. and WeSing, which allows users to have fun 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 which provide an interactive online stage for artists and users to showcase their talent and engage with those interested in their performance; and Kuwo Changting, an audio platform that provides users with various audio content including audiobooks, cross talks, radio dramas and other entertainment. In addition, it sells music-related products, including Kugou headphones, 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 manufacturers to create 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 worldwide media and entertainment company. It operates through three segments: Multiplatform Group, Digital Audio Group and Audio and Multimedia 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 affiliated radio stations. It also provides real-time information on traffic flows and incidents, as well as weather, sports and news updates via approximately 2,100 radio stations and 170 affiliated television channels, as well as Internet and mobiles. As of December 31, 2021, this segment held 863 radio stations, including 249 AM radio stations and 614 FM radio stations. The Digital Audio Group segment provides podcasts, digital sites, newsletters, digital services and programs; and iHeartRadio, a mobile app and web service for radio stations, digital-only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment is engaged in media representation business. This segment also provides cloud and on-premises broadcasting software, such as radio and television automation, music programming, newsroom automation, ad sales management, rework solutions after disaster; 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 search 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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