Six Flags Entertainment (NYSE:FUN – Get Free Report) and Marcus (NYSE:MCS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Dividends
Six Flags Entertainment pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Marcus pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. Six Flags Entertainment pays out -1.7% of its earnings in the form of a dividend. Marcus pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marcus has increased its dividend for 2 consecutive years. Marcus is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Six Flags Entertainment and Marcus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Six Flags Entertainment | 2 | 5 | 8 | 0 | 2.40 |
| Marcus | 0 | 2 | 3 | 1 | 2.83 |
Valuation & Earnings
This table compares Six Flags Entertainment and Marcus”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Six Flags Entertainment | $3.14 billion | 0.47 | -$231.16 million | ($17.72) | -0.82 |
| Marcus | $753.27 million | 0.63 | -$7.79 million | $0.24 | 64.68 |
Marcus has lower revenue, but higher earnings than Six Flags Entertainment. Six Flags Entertainment is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
64.7% of Six Flags Entertainment shares are held by institutional investors. Comparatively, 81.6% of Marcus shares are held by institutional investors. 1.8% of Six Flags Entertainment shares are held by insiders. Comparatively, 5.0% of Marcus shares 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
Six Flags Entertainment has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Marcus has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
Profitability
This table compares Six Flags Entertainment and Marcus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Six Flags Entertainment | -14.92% | -1.00% | -0.22% |
| Marcus | 1.91% | 4.28% | 1.88% |
Summary
Marcus beats Six Flags Entertainment on 14 of the 18 factors compared between the two stocks.
About Six Flags Entertainment
Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.
About Marcus
The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.
Receive News & Ratings for Six Flags Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Six Flags Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
