Sinclair (NASDAQ:SBGI) vs. Lionsgate Studios (NYSE:LION) Critical Survey

Lionsgate Studios (NYSE:LION) and Sinclair (NASDAQ:SBGI) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Insider and Institutional Ownership

41.7% of Sinclair shares are owned by institutional investors. 46.6% of Sinclair shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Lionsgate Studios has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500. Comparatively, Sinclair has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares Lionsgate Studios and Sinclair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lionsgate Studios	-6.97%	N/A	-1.33%
Sinclair	-1.35%	-10.19%	-0.65%

Analyst Ratings

This is a summary of current ratings and target prices for Lionsgate Studios and Sinclair, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lionsgate Studios	2	4	8	1	2.53
Sinclair	1	3	2	0	2.17

Lionsgate Studios presently has a consensus price target of $9.14, indicating a potential upside of 2.20%. Sinclair has a consensus price target of $19.00, indicating a potential upside of 24.18%. Given Sinclair’s higher probable upside, analysts clearly believe Sinclair is more favorable than Lionsgate Studios.

Earnings & Valuation

This table compares Lionsgate Studios and Sinclair”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lionsgate Studios	$3.20 billion	0.81	-$125.30 million	($0.67)	-13.34
Sinclair	$3.55 billion	0.30	$310.00 million	($0.62)	-24.68

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

Summary

Sinclair beats Lionsgate Studios on 9 of the 15 factors compared between the two stocks.

About Lionsgate Studios

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.

About Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.