Alliance Entertainment Holding Corporation (AENT) vs iQIYI, Inc. Sponsored ADR (IQ)

Alliance Entertainment Holding Corporation and iQIYI, Inc. Sponsored ADR are both Entertainment companies. iQIYI, Inc. Sponsored ADR is the larger, with a market value of $537.9M against $247.8M — 2.2× the size. iQIYI, Inc. Sponsored ADR has negative trailing earnings, so its P/E is not meaningful; Alliance Entertainment Holding Corporation trades at 18.9×. Alliance Entertainment Holding Corporation grew revenue faster over the last twelve months: 8.04% against 1.38%. Alliance Entertainment Holding Corporation has the higher net margin (1.14% vs −3.16%) and the higher return on invested capital (8.98% vs −1.08%). Across the 19 metrics below, Alliance Entertainment Holding Corporation leads on 13 and iQIYI, Inc. Sponsored ADR on 6.

Valuation

Metric AENT IQ Entertainment median
P/E 18.88 n/m 22.03
P/S 0.22 0.26 1.47
P/B 2.15 0.53 2.00
Price to free cash flow n/m 9.85 16.60
EV/EBITDA 9.61 n/m 9.65
EV/Sales 0.29 0.63 1.76
Earnings yield 5.30% (11.92%) (0.67%)
Free cash flow yield (1.10%) 10.15% 3.26%

Profitability

Metric AENT IQ Entertainment median
Gross margin 13.26% 18.02% 45.02%
Operating margin 2.37% (1.47%) 2.30%
Net margin 1.14% (3.16%) 0.00%
Free cash flow margin (0.24%) 0.00% 1.56%
Return on equity 11.88% (6.50%) 0.00%
Return on assets 3.44% (1.85%) 0.00%
Return on invested capital 8.98% (1.08%) 0.00%

Growth

Metric AENT IQ Entertainment median
Revenue growth (TTM) 8.04% 1.38% 5.07%
EPS growth (last fiscal year) (13.33%) (127.27%) —
Revenue growth, 5-year CAGR (4.11%) (3.04%) 10.25%
Net income growth, 5-year CAGR 34.71% 0.00% 0.00%

Health

Metric AENT IQ Entertainment median
Debt to equity 0.63 1.09 0.46
Current ratio 1.34 0.45 0.86
Net debt to EBITDA 2.10 1.53 0.72

Dividend

Metric AENT IQ Entertainment median
Dividend yield — — 1.16%
Payout ratio 0.00 0.00 0.00

Size

Metric AENT IQ Entertainment median
Market cap 247.76m 537.91m 1.87b

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