Lions Gate Entertainment Corp. (NYSE: LGF) and Cinedigm Corp (NASDAQ:CIDM) are both cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Volatility & Risk

Lions Gate Entertainment Corp. has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Cinedigm Corp has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

96.7% of Lions Gate Entertainment Corp. shares are owned by institutional investors. Comparatively, 9.2% of Cinedigm Corp shares are owned by institutional investors. 30.4% of Lions Gate Entertainment Corp. shares are owned by insiders. Comparatively, 13.9% of Cinedigm Corp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lions Gate Entertainment Corp. and Cinedigm Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lions Gate Entertainment Corp. 0 1 14 0 2.93
Cinedigm Corp 0 0 0 0 N/A

Lions Gate Entertainment Corp. currently has a consensus target price of $31.00, indicating a potential upside of 18.82%. Given Lions Gate Entertainment Corp.’s higher probable upside, research analysts clearly believe Lions Gate Entertainment Corp. is more favorable than Cinedigm Corp.

Profitability

This table compares Lions Gate Entertainment Corp. and Cinedigm Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lions Gate Entertainment Corp. 4.89% 10.25% 2.66%
Cinedigm Corp -16.74% N/A -8.69%

Dividends

Lions Gate Entertainment Corp. pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. Cinedigm Corp does not pay a dividend. Lions Gate Entertainment Corp. pays out 122.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lions Gate Entertainment Corp. has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Lions Gate Entertainment Corp. and Cinedigm Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lions Gate Entertainment Corp. N/A N/A N/A $0.22 118.60
Cinedigm Corp $90.39 million 0.19 $40.28 million ($2.00) -0.71

Cinedigm Corp has higher revenue and earnings than Lions Gate Entertainment Corp.. Cinedigm Corp is trading at a lower price-to-earnings ratio than Lions Gate Entertainment Corp., indicating that it is currently the more affordable of the two stocks.

Summary

Lions Gate Entertainment Corp. beats Cinedigm Corp on 11 of the 13 factors compared between the two stocks.

Lions Gate Entertainment Corp. Company Profile

Lions Gate Entertainment Corp. is engaged in motion picture production and distribution, television programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games and location-based entertainment. The Company operates through two segments: Motion Pictures and Television Production. The Company’s Motion Pictures segment consists of the development and production of feature films, acquisition of North American and around the world distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and around the world licensing of distribution rights to feature films produced and acquired. The Company’s Television Production segment consists of the development, production and around the world distribution of television productions, including television series, television movies, and mini-series and non-fiction programming.

Cinedigm Corp Company Profile

Cinedigm Corp. is a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to thousands of titles and episodes released across digital, physical, and home and mobile entertainment platforms. The Company also provides digital cinema assets servicing on over 12,000 domestic and foreign movie screens. It operates through four segments: first digital cinema deployment (Phase I Deployment), the second digital cinema deployment (Phase II Deployment), digital cinema services and media content and entertainment group. It collaborates with producers, brands and other content owners to market, source, curate and distribute content to targeted audiences. It distributes content through existing and emerging digital home entertainment platforms and packaged distribution of DVD and Blu-ray discs to wholesalers and retailers and mortar storefronts. It also operates a branded and curated over-the-top entertainment channels.

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