DHX Media (NASDAQ: DHXM) and Rentrak (NASDAQ:RENT) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitabiliy, risk and dividends.

Profitability

This table compares DHX Media and Rentrak’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DHX Media 4.46% 5.05% 1.91%
Rentrak 3.80% 2.04% 1.75%

Dividends

DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.3%. Rentrak does not pay a dividend. DHX Media pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and recommmendations for DHX Media and Rentrak, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DHX Media 0 0 6 0 3.00
Rentrak 0 0 0 0 N/A

DHX Media presently has a consensus target price of $9.13, indicating a potential upside of 94.15%. Given DHX Media’s higher probable upside, equities analysts clearly believe DHX Media is more favorable than Rentrak.

Earnings & Valuation

This table compares DHX Media and Rentrak’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DHX Media $220.21 million 2.86 $49.58 million $0.07 67.14
Rentrak N/A N/A N/A N/A N/A

DHX Media has higher revenue and earnings than Rentrak.

Summary

DHX Media beats Rentrak on 7 of the 8 factors compared between the two stocks.

About DHX Media

DHX Media Ltd is a Canada-based creator, producer, distributor, licensor and broadcaster of kids and family television and film productions. The Company develops, produces and distributes films and television programs for the domestic and international market, broadcasts films and television programs for the domestic markets, as well, the Company manages copyrights, licensing and brands for third parties. It operates through three segments being: Content Business, Copyright Promotions Licensing Group Ltd. (CPLG) and 8504601 Canada Inc. (DHX Television). The Content Business segment includes production, distribution and merchandising operations. The CPLG segment manages copyrights, licensing and brands for third parties. It has five business lines: production (including production service); library and distribution (including digital distribution) of its third party acquired titles; television broadcasting; merchandising and licensing, and new media and interactive.

About Rentrak

Rentrak Corporation is a media measurement and consumer targeting company serving the entertainment, television (TV), video and advertising industries. The Company’s Software as a Service (SaaS) technology merges television viewership information from televisions and devices with consumer behavior and purchase information across multiple platforms, devices and distribution channels. The Company’s product offerings, which are referred as Essentials include TV Everywhere, which includes TV Essentials and StationView Essentials; Movies Everywhere, which includes Box Office Essentials, International Box Office Essentials, PostTrak and PreAct; OnDemand Everywhere, which includes OnDemand Essentials, Digital Download Essentials, Multiscreen Essentials and other Over the Top measurement tools and related products, and Other Services, which includes Studio Revenue Share Essentials (SRSE) and other products relating to measurement of physical content in the home video rental industry.

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