Financial Contrast: Taomee Holdings (NYSE:TAOM) vs. DHX Media (DHXM)

DHX Media (NASDAQ: DHXM) and Taomee Holdings (NYSE:TAOM) are both cyclical consumer goods & 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.

Profitability

This table compares DHX Media and Taomee Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DHX Media 4.46% 5.05% 1.91%
Taomee Holdings 2.06% -0.90% 0.75%

Dividends

DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.9%. Taomee Holdings does not pay a dividend. DHX Media pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and recommmendations for DHX Media and Taomee Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DHX Media 0 3 4 0 2.57
Taomee Holdings 0 0 0 0 N/A

DHX Media currently has a consensus target price of $9.13, suggesting a potential upside of 185.16%. Given DHX Media’s higher possible upside, equities research analysts plainly believe DHX Media is more favorable than Taomee Holdings.

Valuation and Earnings

This table compares DHX Media and Taomee Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DHX Media $245.75 million 1.75 $55.76 million $0.07 45.71
Taomee Holdings N/A N/A N/A N/A N/A

DHX Media has higher revenue and earnings than Taomee Holdings.

Summary

DHX Media beats Taomee Holdings on 7 of the 8 factors compared between the two stocks.

DHX Media Company Profile

DHX Media Ltd is a Canada-based creator, producer, distributor, licensor and broadcaster of kids and family television and film productions. The Company develops, produces and distributes films and television programs for the domestic and international market, broadcasts films and television programs for the domestic markets, as well, the Company manages copyrights, licensing and brands for third parties. It operates through three segments being: Content Business, Copyright Promotions Licensing Group Ltd. (CPLG) and 8504601 Canada Inc. (DHX Television). The Content Business segment includes production, distribution and merchandising operations. The CPLG segment manages copyrights, licensing and brands for third parties. It has five business lines: production (including production service); library and distribution (including digital distribution) of its third party acquired titles; television broadcasting; merchandising and licensing, and new media and interactive.

Taomee Holdings Company Profile

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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