Cineverse (NASDAQ:CNVS) versus Paramount Skydance (NASDAQ:PSKY) Critical Survey

Paramount Skydance (NASDAQ:PSKYGet Free Report) and Cineverse (NASDAQ:CNVSGet Free Report) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

73.0% of Paramount Skydance shares are held by institutional investors. Comparatively, 8.2% of Cineverse shares are held by institutional investors. 0.4% of Paramount Skydance shares are held by insiders. Comparatively, 12.4% of Cineverse shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Paramount Skydance and Cineverse, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Skydance 9 5 4 0 1.72
Cineverse 1 0 2 0 2.33

Paramount Skydance currently has a consensus price target of $11.33, suggesting a potential upside of 6.72%. Cineverse has a consensus price target of $11.50, suggesting a potential upside of 439.91%. Given Cineverse’s stronger consensus rating and higher probable upside, analysts clearly believe Cineverse is more favorable than Paramount Skydance.

Profitability

This table compares Paramount Skydance and Cineverse’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Skydance -2.13% 4.11% 1.21%
Cineverse -12.87% -50.16% -18.30%

Valuation and Earnings

This table compares Paramount Skydance and Cineverse”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paramount Skydance $28.89 billion 0.41 -$621.00 million $0.29 36.62
Cineverse $85.21 million 0.59 -$8.84 million ($0.59) -3.61

Cineverse has lower revenue, but higher earnings than Paramount Skydance. Cineverse is trading at a lower price-to-earnings ratio than Paramount Skydance, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Paramount Skydance has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Cineverse has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Summary

Paramount Skydance beats Cineverse on 9 of the 14 factors compared between the two stocks.

About Paramount Skydance

(Get Free Report)

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.

About Cineverse

(Get Free Report)

Cineverse Corp. operates as a streaming technology and entertainment company. The company operates in two segments, Cinema Equipment, and Content and Entertainment. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels; and offers monitoring, billing, collection, and verification services. It entertains consumers worldwide by providing premium feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.

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