ILG (NASDAQ: ILG) and Digital Cinema Destinations (NASDAQ:DCIN) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Earnings and Valuation

This table compares ILG and Digital Cinema Destinations’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ILG $1.36 billion 2.57 $265.00 million $1.01 27.81
Digital Cinema Destinations N/A N/A N/A ($0.52) -11.52

ILG has higher revenue and earnings than Digital Cinema Destinations. Digital Cinema Destinations is trading at a lower price-to-earnings ratio than ILG, indicating that it is currently the more affordable of the two stocks.

Dividends

ILG pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Digital Cinema Destinations does not pay a dividend. ILG pays out 59.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ILG and Digital Cinema Destinations, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ILG 0 0 7 0 3.00
Digital Cinema Destinations 0 0 0 0 N/A

ILG currently has a consensus target price of $30.71, suggesting a potential upside of 9.34%. Given ILG’s higher possible upside, analysts plainly believe ILG is more favorable than Digital Cinema Destinations.

Insider and Institutional Ownership

80.3% of ILG shares are held by institutional investors. 2.0% of ILG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares ILG and Digital Cinema Destinations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ILG 7.04% 10.46% 4.95%
Digital Cinema Destinations N/A N/A N/A

Summary

ILG beats Digital Cinema Destinations on 10 of the 11 factors compared between the two stocks.

About ILG

ILG, Inc., formerly Interval Leisure Group, Inc., is a provider of professionally delivered vacation experiences. The Company is a global licensee for the Hyatt, Westin and Sheraton brands in vacation ownership. The Company operates through two segments: Exchange and Rental, and Vacation Ownership. Its Exchange and Rental segment offers access to vacation accommodations and other travel-related transactions and services to leisure travelers, by providing vacation exchange services and vacation rental, working with resort developers and operating vacation rental properties. Its Vacation Ownership segment engages in the management of vacation ownership resorts; sales, marketing, and financing of vacation ownership interests, and related services to owners and associations. The Company offers leisure and travel-related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients.

About Digital Cinema Destinations

Digital Cinema Destinations Corp., operates eight theatres and 73 screens located in Westfield, New Jersey (Rialto), Cranford, New Jersey (Cranford), Bloomfield, Connecticut (the Bloomfield 8) and five theatres located in central Pennsylvania (Cinema Centers). During the fiscal year ended June 30, 2012 (fiscal 2012), the Company operates eight theatres, two in New Jersey, with a total of 11 screens, one in Connecticut, with a total of 8 screens and five in central Pennsylvania, with a total of 54 screens. In March 2014, the Company announced that it has completed the acquisition of a seven screen theater in Churchville, MD from Flagship Cinemas.

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