Tencent Music Entertainment Group (NYSE:TME) and WildBrain (OTCMKTS:WLDBF) Financial Analysis

WildBrain (OTCMKTS:WLDBF) and Tencent Music Entertainment Group (NYSE:TME) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Earnings & Valuation

This table compares WildBrain and Tencent Music Entertainment Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WildBrain	N/A	N/A	N/A	N/A	N/A
Tencent Music Entertainment Group	$4.71 billion	2.94	$1.54 billion	$0.81	10.86

Tencent Music Entertainment Group has higher revenue and earnings than WildBrain.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for WildBrain and Tencent Music Entertainment Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WildBrain	0	1	0	0	2.00
Tencent Music Entertainment Group	0	10	3	0	2.23

Tencent Music Entertainment Group has a consensus target price of $17.21, indicating a potential upside of 95.56%. Given Tencent Music Entertainment Group’s stronger consensus rating and higher probable upside, analysts clearly believe Tencent Music Entertainment Group is more favorable than WildBrain.

Institutional and Insider Ownership

24.3% of Tencent Music Entertainment Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WildBrain	N/A	N/A	N/A
Tencent Music Entertainment Group	26.27%	11.53%	8.87%

Summary

Tencent Music Entertainment Group beats WildBrain on 8 of the 8 factors compared between the two stocks.

About WildBrain

WildBrain Ltd. develops, produces, and distributes films and television programs in Canada, the United States, the United Kingdom, and internationally. The company operates through two segments, Content and Canadian Television Broadcasting. It focuses on children's and family content, including animated series; provides content production and distribution services; and operates children's ad-supported video-on-demand (AVOD) channels on YouTube and other AVOD platforms. The company also licenses rights of new proprietary series or pre-sells shows that are in development to individual streaming services, broadcasters, and other media platforms; and re-licenses rights of existing series in the library or packages of programs of its own proprietary titles, as well as third-party produced titles. In addition, it holds broadcast licenses for Family Channel, Family Jr., Télémagino, and WildBrain TV television channels; and operates as entertainment, sport, and brand licensing agency for the company's own and third party brands. Further, the company licenses its brands, such as Peanuts, Strawberry Shortcake, Chip and Potato, Teletubbies, Yo Gabba Gabba!, Caillou, Johnny Test, In the Night Garden, Mattel on Bob the Builder, Fireman Sam, Little People, Polly Pocket, Degrassi, and Inspector Gadget, as well as publishing, music rights, and live tours. Additionally, it offers its films and television programs for streaming services; and conventional and specialty terrestrial and cable/satellite television broadcasters, as well as for other media platforms and digital providers. The company was formerly known as DHX Media Ltd. and changed its name to WildBrain Ltd. in December 2019. WildBrain Ltd. was incorporated in 2004 and is headquartered in Toronto, Canada.

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.