Eros International PLC (NYSE: EROS) and Cinedigm Corp (NASDAQ:CIDM) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

63.9% of Eros International PLC shares are owned by institutional investors. Comparatively, 8.7% of Cinedigm Corp shares are owned by institutional investors. 13.9% of Cinedigm Corp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Eros International PLC and Cinedigm Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eros International PLC 0 0 2 0 3.00
Cinedigm Corp 0 0 0 0 N/A

Eros International PLC currently has a consensus target price of $15.00, suggesting a potential upside of 29.31%. Given Eros International PLC’s higher possible upside, equities research analysts clearly believe Eros International PLC is more favorable than Cinedigm Corp.

Profitability

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

Net Margins Return on Equity Return on Assets
Eros International PLC 1.50% 0.41% 0.27%
Cinedigm Corp -18.91% N/A -9.94%

Valuation and Earnings

This table compares Eros International PLC and Cinedigm Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eros International PLC $252.99 million 2.73 $26.53 million $0.06 193.37
Cinedigm Corp $83.16 million 0.24 $34.79 million ($1.78) -0.84

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

Risk and Volatility

Eros International PLC has a beta of 0.5, meaning that its share price is 50% less 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.

Summary

Eros International PLC beats Cinedigm Corp on 9 of the 12 factors compared between the two stocks.

Eros International PLC Company Profile

Eros International Plc (Eros) is a holding company, which serves the Indian film entertainment industry. The Company’s principal activities include the acquisition, co-production and distribution of Indian films and related content. It distributes its film content through the distribution channels, such as theatrical, including multiplex chains and standalone theaters; television syndication, including satellite television broadcasting, cable television and terrestrial television; digital and ancillary, including music, inflight entertainment, home video, Internet protocol television (IPTV), video on demand (VOD), and Internet channels and Eros Now. As of March 31, 2016, its distribution network extends to over 50 countries, such as the United States, the United Kingdom, the Middle East, Germany, Poland, Russia, Romania, Indonesia and Arabic speaking countries. It conducts global operations through its Indian and international subsidiaries, including Eros International Media Limited.

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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