Head to Head Survey: Cineverse (NASDAQ:CNVS) & HUYA (NYSE:HUYA)

HUYA (NYSE:HUYA) and Cineverse (NASDAQ:CNVS) are both small-cap communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HUYA	-1.59%	0.20%	0.14%
Cineverse	-12.87%	-50.16%	-18.30%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUYA	1	1	1	0	2.00
Cineverse	1	0	2	0	2.33

HUYA presently has a consensus target price of $3.40, suggesting a potential upside of 46.24%. Cineverse has a consensus target price of $14.00, suggesting a potential upside of 690.96%. Given Cineverse’s stronger consensus rating and higher probable upside, analysts plainly believe Cineverse is more favorable than HUYA.

Earnings and Valuation

This table compares HUYA and Cineverse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUYA	$929.83 million	0.57	-$16.10 million	($0.06)	-38.75
Cineverse	$65.73 million	0.72	-$8.84 million	($0.59)	-3.00

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

Risk & Volatility

HUYA has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Cineverse has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Institutional & Insider Ownership

23.2% of HUYA shares are held by institutional investors. Comparatively, 8.2% of Cineverse shares are held by institutional investors. 1.2% of HUYA shares are held by insiders. Comparatively, 10.8% of Cineverse shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Cineverse beats HUYA on 8 of the 14 factors compared between the two stocks.

About HUYA

HUYA Inc. operates online game livestreaming and interactive entertainment platforms. Its services connect viewers with game streamers and esports events, and include live video, chat and other interactive features, as well as advertising and related services for game publishers and content creators. The company’s flagship platform, Huya Live, serves users in China. HUYA has also used Nimo TV to reach audiences in international markets. The business grew out of the game livestreaming operations of YY, a Chinese social media company, and HUYA became a publicly listed company in 2018.

About Cineverse

Cineverse (NASDAQ: CNVS) is a digital entertainment and streaming technology company that develops, distributes and operates content across streaming, digital, television and physical-media platforms. The company serves audiences through advertising-supported, subscription and transactional models, as well as through licensing and distribution arrangements with content owners and platform partners. Cineverse operates a portfolio of streaming services and entertainment brands focused on areas such as anime, Asian cinema, horror, documentaries and classic film and television.