iHuman (NYSE:IH – Get Free Report) and Warner Music Group (NASDAQ:WMG – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares iHuman and Warner Music Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iHuman | $115.40 million | 0.54 | $13.64 million | $0.19 | 6.39 |
| Warner Music Group | $6.71 billion | 2.23 | $365.00 million | $1.26 | 22.71 |
Profitability
This table compares iHuman and Warner Music 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% |
| Warner Music Group | 9.20% | 85.50% | 7.00% |
Insider & Institutional Ownership
4.9% of iHuman shares are owned by institutional investors. Comparatively, 96.9% of Warner Music Group shares are owned by institutional investors. 63.6% of iHuman shares are owned by insiders. Comparatively, 0.1% of Warner Music Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
iHuman has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Warner Music Group has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for iHuman and Warner Music Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iHuman | 1 | 0 | 0 | 0 | 1.00 |
| Warner Music Group | 0 | 4 | 12 | 0 | 2.75 |
Warner Music Group has a consensus price target of $38.25, indicating a potential upside of 33.70%. Given Warner Music Group’s stronger consensus rating and higher probable upside, analysts plainly believe Warner Music Group is more favorable than iHuman.
Summary
Warner Music Group beats iHuman on 12 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 Warner Music Group
Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics, and Warner Music Nashville. This segment markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. The Music Publishing segment owns and acquires rights to approximately one million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions. Its catalog includes approximately 150,000 songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. This segment also administers the music and soundtracks of various third-party television and film producers and studios. The company was founded in 1929 and is headquartered in New York, New York.
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