Rentrak (NASDAQ: RENT) and Lions Gate Entertainment Corp. (NYSE:LGF) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Dividends

Lions Gate Entertainment Corp. pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. Rentrak 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. Lions Gate Entertainment Corp. has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

96.7% of Lions Gate Entertainment Corp. shares are owned by institutional investors. 30.4% of Lions Gate Entertainment Corp. shares are owned 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.

Profitability

This table compares Rentrak and Lions Gate Entertainment Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rentrak 3.80% 2.04% 1.75%
Lions Gate Entertainment Corp. 4.89% 10.25% 2.66%

Analyst Ratings

This is a breakdown of current ratings and price targets for Rentrak and Lions Gate Entertainment Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rentrak 0 0 0 0 N/A
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 plainly believe Lions Gate Entertainment Corp. is more favorable than Rentrak.

Valuation and Earnings

This table compares Rentrak and Lions Gate Entertainment Corp.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rentrak N/A N/A N/A N/A N/A
Lions Gate Entertainment Corp. N/A N/A N/A $0.22 118.60

Summary

Lions Gate Entertainment Corp. beats Rentrak on 9 of the 10 factors compared between the two stocks.

Rentrak Company Profile

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.

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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