Entercom Communications (NYSE:ETM) and Tencent Music Entertainment Group (NYSE:TME) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Entercom Communications and Tencent Music Entertainment Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Entercom Communications | 0 | 1 | 2 | 0 | 2.67 |
| Tencent Music Entertainment Group | 1 | 3 | 8 | 0 | 2.58 |
Entercom Communications presently has a consensus price target of $5.25, suggesting a potential upside of 1.35%. Tencent Music Entertainment Group has a consensus price target of $25.93, suggesting a potential upside of 43.82%. Given Tencent Music Entertainment Group's higher possible upside, analysts clearly believe Tencent Music Entertainment Group is more favorable than Entercom Communications.
Insider and Institutional Ownership
46.4% of Entercom Communications shares are owned by institutional investors. 16.4% of Entercom Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Entercom Communications has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Tencent Music Entertainment Group has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
Valuation & Earnings
This table compares Entercom Communications and Tencent Music Entertainment Group's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Entercom Communications | $1.49 billion | 0.49 | $-420,210,000.00 | $1.00 | 5.18 |
| Tencent Music Entertainment Group | $3.65 billion | 8.28 | $576.20 million | $0.37 | 48.73 |
Tencent Music Entertainment Group has higher revenue and earnings than Entercom Communications. Entercom Communications is trading at a lower price-to-earnings ratio than Tencent Music Entertainment Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Entercom Communications and Tencent Music Entertainment Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Entercom Communications | -49.10% | -3.14% | -0.73% |
| Tencent Music Entertainment Group | 14.25% | 9.51% | 7.79% |
Summary
Tencent Music Entertainment Group beats Entercom Communications on 9 of the 14 factors compared between the two stocks.
