Financial Contrast: Reservoir Media (RSVR) versus The Competition

Reservoir Media (NASDAQ:RSVR) is one of 185 public companies in the “Entertainment” industry, but how does it weigh in compared to its rivals? We will compare Reservoir Media to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Insider and Institutional Ownership

44.4% of Reservoir Media shares are held by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are held by institutional investors. 26.0% of Reservoir Media shares are held by insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Reservoir Media has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Reservoir Media’s rivals have a beta of 1.00, meaning that their average share price is 0% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Reservoir Media and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reservoir Media	0	2	0	0	2.00
Reservoir Media Competitors	1897	4557	9685	257	2.51

As a group, “Entertainment” companies have a potential upside of 14.46%. Given Reservoir Media’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Reservoir Media has less favorable growth aspects than its rivals.

Profitability

This table compares Reservoir Media and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reservoir Media	6.09%	2.97%	1.18%
Reservoir Media Competitors	9.71%	-32.22%	-3.02%

Valuation and Earnings

This table compares Reservoir Media and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Reservoir Media	$184.46 million	$8.30 million	61.24
Reservoir Media Competitors	$6.20 billion	$67.29 million	2.41

Reservoir Media’s rivals have higher revenue and earnings than Reservoir Media. Reservoir Media is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Reservoir Media rivals beat Reservoir Media on 8 of the 13 factors compared.

About Reservoir Media

Reservoir Media is an independent music company that owns and manages music publishing and recorded-music rights. Its activities include administering song catalogs, licensing music for film, television, advertising and other uses, and distributing recorded music. The company works with songwriters, artists and other rights holders, and its catalog spans multiple genres and generations of music. Reservoir was founded in 2007 and has expanded its catalog and operations through acquisitions, including the purchase of British music publisher Chrysalis in 2020.