Financial Comparison: iHuman (NYSE:IH) and TKO Group (NYSE:TKO)

iHuman (NYSE:IH) and TKO Group (NYSE:TKO) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Institutional & Insider Ownership

4.9% of iHuman shares are owned by institutional investors. Comparatively, 89.8% of TKO Group shares are owned by institutional investors. 63.6% of iHuman shares are owned by company insiders. Comparatively, 64.3% of TKO Group 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.

Profitability

This table compares iHuman and TKO Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iHuman	9.35%	7.46%	5.40%
TKO Group	4.33%	2.67%	1.49%

Volatility and Risk

iHuman has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, TKO Group has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares iHuman and TKO Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iHuman	$115.40 million	0.51	$13.64 million	$0.19	6.10
TKO Group	$4.74 billion	7.31	$195.40 million	$2.85	64.21

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

Analyst Ratings

This is a summary of current recommendations for iHuman and TKO Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iHuman	1	0	0	0	1.00
TKO Group	0	6	10	0	2.62

TKO Group has a consensus target price of $237.50, indicating a potential upside of 29.79%. Given TKO Group’s stronger consensus rating and higher possible upside, analysts plainly believe TKO Group is more favorable than iHuman.

Summary

TKO Group beats iHuman on 11 of the 14 factors compared between the two stocks.

About iHuman

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People’s Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, iHuman Writing, iHuman Fantastic Friends, and iHuman Readers; bekids Coding, bekids Coloring, bekids Reading, bekids Puzzle, bekids Academy, and Gogo Town; and Aha World, an open-ended interactive app that nurtures a desire for discovery. It provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children’s abilities in speaking, critical thinking, independent reading, and creativity. iHuman Inc. was founded in 1996 and is based in Beijing, the People’s Republic of China.

About TKO Group

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.