Cinedigm Corp (CIDM) versus Lions Gate Entertainment Corp. (LGF) Critical Contrast
Cinedigm Corp (NASDAQ: CIDM) and Lions Gate Entertainment Corp. (NYSE:LGF) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Volatility and Risk
Cinedigm Corp has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Lions Gate Entertainment Corp. has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Institutional & Insider Ownership
9.2% of Cinedigm Corp shares are held by institutional investors. Comparatively, 96.7% of Lions Gate Entertainment Corp. shares are held by institutional investors. 13.9% of Cinedigm Corp shares are held by company insiders. Comparatively, 30.4% of Lions Gate Entertainment Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Cinedigm Corp and Lions Gate Entertainment Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lions Gate Entertainment Corp.||0||1||14||0||2.93|
Lions Gate Entertainment Corp. has a consensus target price of $31.00, indicating a potential upside of 18.82%. Given Lions Gate Entertainment Corp.’s higher probable upside, analysts clearly believe Lions Gate Entertainment Corp. is more favorable than Cinedigm Corp.
This table compares Cinedigm Corp and Lions Gate Entertainment 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%|
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. Cinedigm Corp has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Cinedigm Corp and Lions Gate Entertainment Corp.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cinedigm Corp||$90.39 million||0.19||$40.28 million||($2.00)||-0.71|
|Lions Gate Entertainment Corp.||N/A||N/A||N/A||$0.22||118.60|
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.
Lions Gate Entertainment Corp. beats Cinedigm Corp on 10 of the 13 factors compared between the two stocks.
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.
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.
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