Reviewing Kartoon Studios (NASDAQ:TOON) and Universal Music Group (OTCMKTS:UMGNF)

Universal Music Group (OTCMKTS:UMGNF) and Kartoon Studios (NASDAQ:TOON) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

8.6% of Kartoon Studios shares are held by institutional investors. 9.0% of Kartoon Studios shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Universal Music Group and Kartoon Studios’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Music Group	N/A	N/A	N/A	N/A	N/A
Kartoon Studios	$44.08 million	1.22	-$77.10 million	($2.30)	-0.66

Universal Music Group has higher earnings, but lower revenue than Kartoon Studios.

Analyst Ratings

This is a summary of recent ratings and price targets for Universal Music Group and Kartoon Studios, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Music Group	0	0	1	0	3.00
Kartoon Studios	0	0	0	0	N/A

Universal Music Group presently has a consensus price target of $24.00, suggesting a potential downside of 16.80%. Kartoon Studios has a consensus price target of $10.00, suggesting a potential upside of 557.89%. Given Kartoon Studios’ higher probable upside, analysts plainly believe Kartoon Studios is more favorable than Universal Music Group.

Profitability

This table compares Universal Music Group and Kartoon Studios’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Music Group	N/A	N/A	N/A
Kartoon Studios	-174.80%	-100.75%	-49.57%

About Universal Music Group

Universal Music Group N.V. operates as a music company worldwide. It operates through Recorded Music, Music Publishing, and Merchandising & Other segments. The Recorded Music segment discovers and develops recording artists, as well as markets and promotes their music across various formats and platforms; and engages in the live events, sponsorship, film, and television operations. The Music Publishing segment discovers and develops songwriters, as well as owns and administers the copyright for musical compositions used in recordings, public performances, and related uses, such as films and advertisements. The Merchandising & Other segment produces and sells artist and other branded products through various sales channels, including fashion retail, concert touring, and internet, as well as offers brand rights management services. The company has approximately 3 million recordings, 4 million owned and administered titles, and 220 artists/brands, as well as owns approximately 50 labels covering various music genres. Universal Music Group N.V. was incorporated in 2020 and is headquartered in Hilversum, the Netherlands.

About Kartoon Studios

Kartoon Studios Inc., a content and brand management company, creates, produces, licenses, and broadcasts educational and multimedia animated content for children worldwide. The company offers Ukulele U, a live-action IP preschool music series; Team Zenko Go!, a preschool computer animated children's streaming television series; Rainbow Rangers, an animated series about the adventures of seven magical girls; Guava Juice, a 2D animated IP series; Shaq's Garage, a children's animated series about the secret adventures; Cocomelon that provides 3D animation videos of traditional nursery rhymes and children's songs; Eggventurers, a preschool animated series; Barbie Productions that provides animated Barbie series; Octonauts, a children's television series based on the children's books; Roblox Rumble, an elimination-style competitive reality series; Spin Master Productions; Madagascar; and Bee & PuppyCat. It also operates a cartoon channel over various platforms. In addition, the company acts as a licensing agent for Llama Llama, Bee & PuppyCat, and Castlevania. It serves various customers and partners, including broadcasters, consumer products licensees, and online platforms. The company was formerly known as Genius Brands International, Inc. and changed its name to Kartoon Studios Inc. in June 2023. Kartoon Studios Inc. was incorporated in 2006 and is headquartered in Beverly Hills, California.