Contrasting Universal Music Group (OTCMKTS:UMGNF) and Tron (NASDAQ:TRON)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Universal Music Group and Tron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Music Group	0	1	1	0	2.50
Tron	1	0	0	0	1.00

Profitability

This table compares Universal Music Group and Tron’s 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
Tron	269.52%	-4.65%	-4.56%

Institutional & Insider Ownership

28.0% of Tron shares are held by institutional investors. 86.2% of Tron shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Universal Music Group and Tron”s revenue, earnings per share (EPS) 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
Tron	$4.31 million	89.48	-$4.34 million	($0.04)	-37.50

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

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 Tron

SRM Entertainment, Inc. designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.