iQIYI (NASDAQ:IQ – Get Free Report) and Cineverse (NASDAQ:CNVS – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.
Valuation & Earnings
This table compares iQIYI and Cineverse’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iQIYI | $30.07 billion | 0.18 | -$19.75 million | ($0.02) | -285.00 |
| Cineverse | $68.03 million | 0.27 | -$9.73 million | ($0.95) | -1.63 |
Cineverse has lower revenue, but higher earnings than iQIYI. iQIYI is trading at a lower price-to-earnings ratio than Cineverse, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Insider & Institutional Ownership
30.2% of iQIYI shares are held by institutional investors. 57.8% of iQIYI shares are held by company insiders. Comparatively, 16.4% of Cineverse shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares iQIYI and Cineverse’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iQIYI | -0.50% | -2.03% | -0.32% |
| Cineverse | -14.31% | -29.87% | -10.48% |
Analyst Ratings
This is a breakdown of recent recommendations for iQIYI and Cineverse, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iQIYI | 1 | 2 | 7 | 0 | 2.60 |
| Cineverse | 0 | 0 | 1 | 0 | 3.00 |
iQIYI currently has a consensus target price of $6.34, indicating a potential upside of 11.16%. Cineverse has a consensus target price of $7.75, indicating a potential upside of 400.00%. Given Cineverse’s stronger consensus rating and higher possible upside, analysts plainly believe Cineverse is more favorable than iQIYI.
Summary
iQIYI beats Cineverse on 8 of the 14 factors compared between the two stocks.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite, which offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
About Cineverse
Cineverse Corp. operates as a streaming technology and entertainment company. It owns and operates streaming channels, powered by its proprietary technology platform. The company features brands for subscription video on demand (SVOD), advertising-based video on demand (AVOD), and free, ad-supported streaming television (FAST) channels. It entertains consumers worldwide by providing premium feature film and television series, enthusiast streaming channels, and technology services to media, retail, and technology companies. 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 headquartered in New York, New York.
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