DTS (NASDAQ: DTSI) and Cinedigm Corp (NASDAQ:CIDM) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for DTS and Cinedigm Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTS 0 4 0 0 2.00
Cinedigm Corp 0 0 0 0 N/A

DTS currently has a consensus target price of $42.50, indicating a potential upside of 0.09%. Given DTS’s higher probable upside, equities research analysts clearly believe DTS is more favorable than Cinedigm Corp.

Profitability

This table compares DTS and Cinedigm Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DTS 1.17% 1.04% 0.59%
Cinedigm Corp -18.91% N/A -9.94%

Institutional & Insider Ownership

98.1% of DTS shares are owned by institutional investors. Comparatively, 8.7% of Cinedigm Corp shares are owned by institutional investors. 11.3% of DTS shares are owned by insiders. Comparatively, 13.9% of Cinedigm Corp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

DTS pays an annual dividend of $0.08 per share and has a dividend yield of 0.2%. Cinedigm Corp does not pay a dividend. DTS pays out -19.0% of its earnings in the form of a dividend.

Risk and Volatility

DTS has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Cinedigm Corp has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares DTS and Cinedigm Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DTS N/A N/A N/A ($0.42) -101.09
Cinedigm Corp $83.16 million 0.24 $34.79 million ($1.78) -0.84

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

Summary

DTS beats Cinedigm Corp on 9 of the 11 factors compared between the two stocks.

DTS Company Profile

DTS, Inc. is an audio technology solutions provider for high-definition entertainment experiences. The Company’s audio solutions are designed to enable recording, delivery and playback of high-definition audio, and are included by licensee customers around the world into a range of consumer electronics devices, including televisions, personal computers (PCs), smartphones, tablets, digital media players (DMPs), set-top-boxes, soundbars, wireless speakers, video game consoles, Blu-ray Disc players, automotive audio systems, audio/video receivers (AVRs), digital versatile disc (DVD)-based products and home theater systems. In the wireless speakers market, the Company maintains a Play-Fi Certified original design manufacturer (ODM) Program. The Company’s market base includes Blu-ray, Home audio video (AV) and Automotive. The Blu-ray market includes standalone players, gaming devices and disc drives included in PCs.

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.

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