World Wrestling Entertainment (NYSE: WWE) and Taomee Holdings (NYSE:TAOM) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

49.5% of World Wrestling Entertainment shares are owned by institutional investors. 49.8% of World Wrestling Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares World Wrestling Entertainment and Taomee Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
World Wrestling Entertainment $762.15 million 2.39 $81.40 million $0.31 76.26
Taomee Holdings N/A N/A N/A N/A N/A

World Wrestling Entertainment has higher revenue and earnings than Taomee Holdings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for World Wrestling Entertainment and Taomee Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Wrestling Entertainment 1 2 6 0 2.56
Taomee Holdings 0 0 0 0 N/A

World Wrestling Entertainment currently has a consensus target price of $24.43, suggesting a potential upside of 3.34%. Given World Wrestling Entertainment’s higher possible upside, analysts clearly believe World Wrestling Entertainment is more favorable than Taomee Holdings.

Dividends

World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Taomee Holdings does not pay a dividend. World Wrestling Entertainment pays out 154.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares World Wrestling Entertainment and Taomee Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Wrestling Entertainment 3.29% 13.07% 5.51%
Taomee Holdings 2.06% -0.90% 0.75%

Summary

World Wrestling Entertainment beats Taomee Holdings on 9 of the 10 factors compared between the two stocks.

About World Wrestling Entertainment

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

About Taomee Holdings

Taomee Holdings Limited is a children’s entertainment and media company in China. The Company is engaged in developing branded entertainment experiences across online and mobile platforms. It has developed branded entertainment franchises, including its major franchises of Mole’s World, Seer and Flower Angel. In addition, the Company also operates the franchise of Canimals in China. The Company’s brands and franchises have expanded into various online and offline platforms, including the virtual worlds, video streaming site, mobile games and applications, social networking, films and cartoon animations, merchandising and toys. The Company provides a portfolio of services and products through two business segments: online business and offline business.

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