Netflix (NASDAQ:NFLX – Get Free Report) and Cinemark (NYSE:CNK – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Insider & Institutional Ownership
80.9% of Netflix shares are owned by institutional investors. 1.2% of Netflix shares are owned by insiders. Comparatively, 2.4% of Cinemark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Netflix and Cinemark, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netflix | 1 | 15 | 35 | 4 | 2.76 |
| Cinemark | 0 | 6 | 9 | 0 | 2.60 |
Risk & Volatility
Netflix has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Cinemark has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Valuation & Earnings
This table compares Netflix and Cinemark”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netflix | $48.37 billion | 6.05 | $10.98 billion | $3.18 | 22.11 |
| Cinemark | $3.36 billion | 1.25 | $138.20 million | $1.69 | 21.52 |
Netflix has higher revenue and earnings than Cinemark. Cinemark is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Netflix and Cinemark’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Netflix | 28.22% | 40.02% | 19.81% |
| Cinemark | 6.44% | 50.94% | 4.88% |
Summary
Netflix beats Cinemark on 13 of the 15 factors compared between the two stocks.
About Netflix
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
About Cinemark
Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. As of February 16, 2024, it operated 501 theatres with 5,719 screens in 42 states and 13 countries in South and Central America. Cinemark Holdings, Inc. was founded in 1984 and is headquartered in Plano, Texas.
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