Analyzing Paramount Skydance (NASDAQ:PSKY) & Cineverse (NASDAQ:CNVS)

Cineverse (NASDAQ:CNVS) and Paramount Skydance (NASDAQ:PSKY) are both communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Earnings and Valuation

This table compares Cineverse and Paramount Skydance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cineverse	$65.73 million	0.75	-$8.84 million	($0.59)	-3.53
Paramount Skydance	$28.89 billion	0.39	-$621.00 million	$0.29	34.86

Cineverse has higher earnings, but lower revenue 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.

Risk and Volatility

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

Analyst Recommendations

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

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

Cineverse currently has a consensus target price of $11.50, suggesting a potential upside of 452.88%. Paramount Skydance has a consensus target price of $11.17, suggesting a potential upside of 10.45%. Given Cineverse’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cineverse is more favorable than Paramount Skydance.

Profitability

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

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

Insider and Institutional Ownership

8.2% of Cineverse shares are owned by institutional investors. Comparatively, 73.0% of Paramount Skydance shares are owned by institutional investors. 12.4% of Cineverse shares are owned by company insiders. Comparatively, 0.4% of Paramount Skydance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

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

About Cineverse

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.

About Paramount Skydance

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.