Cinedigm Corp (NASDAQ: CIDM) and Taomee Holdings (NYSE:TAOM) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cinedigm Corp and Taomee Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cinedigm Corp 0 0 0 0 N/A
Taomee Holdings 0 0 0 0 N/A

Profitability

This table compares Cinedigm Corp and Taomee Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cinedigm Corp -18.91% N/A -9.94%
Taomee Holdings 2.06% -0.90% 0.75%

Insider and Institutional Ownership

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 stock is poised for long-term growth.

Valuation & Earnings

This table compares Cinedigm Corp and Taomee Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cinedigm Corp $90.39 million 0.19 -$15.12 million ($1.78) -0.72
Taomee Holdings N/A N/A N/A ($0.09) -41.11

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

Volatility and Risk

Cinedigm Corp has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Taomee Holdings has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

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.

Taomee Holdings Company Profile

Taomee Holdings Limited is a children’s entertainment and media company in China. The Company is engaged in developing branded entertainment experiences across online and mobile platforms. It has developed branded entertainment franchises, including its major franchises of Mole’s World, Seer and Flower Angel. In addition, the Company also operates the franchise of Canimals in China. The Company’s brands and franchises have expanded into various online and offline platforms, including the virtual worlds, video streaming site, mobile games and applications, social networking, films and cartoon animations, merchandising and toys. The Company provides a portfolio of services and products through two business segments: online business and offline business.

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