Tencent Music Entertainment Group (NYSE:TME – Get Free Report) and BuzzFeed (NASDAQ:BZFD – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Risk and Volatility
Tencent Music Entertainment Group has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 3.4, suggesting that its share price is 240% more volatile than the S&P 500.
Valuation & Earnings
This table compares Tencent Music Entertainment Group and BuzzFeed”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tencent Music Entertainment Group | $3.89 billion | 10.09 | $924.18 million | $0.91 | 25.13 |
| BuzzFeed | $189.89 million | 0.34 | -$10.10 million | $0.25 | 7.00 |
Tencent Music Entertainment Group has higher revenue and earnings than BuzzFeed. BuzzFeed 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.
Analyst Ratings
This is a summary of current ratings and price targets for Tencent Music Entertainment Group and BuzzFeed, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tencent Music Entertainment Group | 0 | 0 | 10 | 2 | 3.17 |
| BuzzFeed | 1 | 0 | 0 | 1 | 2.50 |
Tencent Music Entertainment Group presently has a consensus target price of $24.47, suggesting a potential upside of 7.00%. Given Tencent Music Entertainment Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Tencent Music Entertainment Group is more favorable than BuzzFeed.
Institutional & Insider Ownership
24.3% of Tencent Music Entertainment Group shares are owned by institutional investors. Comparatively, 37.6% of BuzzFeed shares are owned by institutional investors. 19.2% of BuzzFeed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Tencent Music Entertainment Group and BuzzFeed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tencent Music Entertainment Group | 33.72% | 10.75% | 8.39% |
| BuzzFeed | 4.75% | -28.11% | -11.14% |
Summary
Tencent Music Entertainment Group beats BuzzFeed on 12 of the 15 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 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.
About BuzzFeed
BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.
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