Sega Sammy (OTCMKTS:SGAMY) versus Cinemark (NYSE:CNK) Financial Analysis

Cinemark (NYSE:CNK) and Sega Sammy (OTCMKTS:SGAMY) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

0.2% of Sega Sammy shares are owned by institutional investors. 2.4% of Cinemark shares are owned 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cinemark and Sega Sammy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cinemark	0	5	9	1	2.73
Sega Sammy	0	0	0	0	0.00

Cinemark currently has a consensus price target of $37.93, indicating a potential upside of 5.39%. Given Cinemark’s stronger consensus rating and higher probable upside, analysts clearly believe Cinemark is more favorable than Sega Sammy.

Dividends

Cinemark pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Sega Sammy pays an annual dividend of $0.05 per share and has a dividend yield of 1.1%. Cinemark pays out 21.3% of its earnings in the form of a dividend. Sega Sammy pays out 0.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sega Sammy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Cinemark and Sega Sammy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cinemark	6.44%	50.94%	4.88%
Sega Sammy	N/A	N/A	N/A

Valuation and Earnings

This table compares Cinemark and Sega Sammy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cinemark	$3.36 billion	1.24	$138.20 million	$1.69	21.30
Sega Sammy	N/A	N/A	N/A	$17.75	0.27

Cinemark has higher revenue and earnings than Sega Sammy. Sega Sammy is trading at a lower price-to-earnings ratio than Cinemark, indicating that it is currently the more affordable of the two stocks.

Summary

Cinemark beats Sega Sammy on 10 of the 14 factors compared between the two stocks.

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.

About Sega Sammy

Sega Sammy Holdings Inc., through its subsidiaries, engages in the game machine, entertainment content, and resort businesses. The company operates through Entertainment Contents, Pachislot and Pachinko Machines, and Resort segments. It develops Pachislot machines and provides machines for the pachinko business; offers entertainment-related content and services, including consumer and arcade games, toys, and animation, as well as develops and sells amusement machines and animated films; and develops and operates hotels, entertainment and commercial facilities, and casinos. The company was founded in 2004 and is based in Tokyo, Japan.