Financial Contrast: Paramount Skydance (NASDAQ:PSKY) & Cineplex (OTCMKTS:CPXGF)

Cineplex (OTCMKTS:CPXGF) and Paramount Skydance (NASDAQ:PSKY) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Institutional & Insider Ownership

42.8% of Cineplex shares are held by institutional investors. Comparatively, 73.0% of Paramount Skydance shares are held by institutional investors. 0.4% of Paramount Skydance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Cineplex and Paramount Skydance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cineplex	N/A	N/A	N/A	$1.02	7.79
Paramount Skydance	$29.21 billion	0.45	-$6.19 billion	($0.03)	-405.00

Cineplex has higher earnings, but lower revenue than Paramount Skydance. Paramount Skydance is trading at a lower price-to-earnings ratio than Cineplex, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Cineplex and Paramount Skydance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cineplex	0	1	2	0	2.67
Paramount Skydance	9	5	1	0	1.47

Paramount Skydance has a consensus target price of $14.00, suggesting a potential upside of 15.23%. Given Paramount Skydance’s higher possible upside, analysts clearly believe Paramount Skydance is more favorable than Cineplex.

Profitability

This table compares Cineplex and Paramount Skydance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cineplex	N/A	N/A	N/A
Paramount Skydance	-0.95%	3.95%	1.41%

Dividends

Cineplex pays an annual dividend of $1.47 per share and has a dividend yield of 18.5%. Paramount Skydance pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Cineplex pays out 144.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paramount Skydance pays out -666.7% of its earnings in the form of a dividend.

Summary

Paramount Skydance beats Cineplex on 7 of the 13 factors compared between the two stocks.

About Cineplex

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Location-Based Entertainment. The company engages in theatre exhibitions and food service activities; and provision of alternative programming service comprising international film programming, as well as content offered under the Event Cinema brand, including The Metropolitan Opera, sporting events, concerts, and dedicated event screens. The company also operates cineplex.com, a website that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce solutions; Cineplex mobile app; and the Cineplex Store, which provides transactional video-on-demand, including Home Premiere services, such as premium video on demand and premium electronic sell through services. In addition, it incorporates advertising mediums related to theatre exhibition; and offers digital signage solutions and in-store retail media networks for various brands in shopping centers, restaurants, retailers, and entertainment destinations. Further, the company operates location-based entertainment establishments, including The Rec Room, a social entertainment destination for millennials that offers a range of entertainment options, such as simulation, redemption, video, recreational gaming, attractions, and a live entertainment venue for watching entertainment programming; Playdium, a complex designed for teens and families; and Cineplex Junxion, an entertainment concept for movies, amusement gaming, dining, and live performances, as well as in-theatre gaming centers. Additionally, it offers Scene+, a customer loyalty program designed to offer members discounts and the opportunity to earn and redeem points. Cineplex Inc. was founded in 1912 and is headquartered in Toronto, Canada.

About Paramount Skydance

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.