Function(x) (OTCMKTS: FNCX) and Cinedigm (NASDAQ:CIDM) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Insider and Institutional Ownership

0.0% of Function(x) shares are held by institutional investors. Comparatively, 5.5% of Cinedigm shares are held by institutional investors. 60.5% of Function(x) shares are held by company insiders. Comparatively, 13.9% of Cinedigm 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.

Risk & Volatility

Function(x) has a beta of -0.55, indicating that its share price is 155% less volatile than the S&P 500. Comparatively, Cinedigm has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Function(x) and Cinedigm, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Function(x) 0 0 0 0 N/A
Cinedigm 0 0 0 0 N/A

Earnings and Valuation

This table compares Function(x) and Cinedigm’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Function(x) $4.51 million 0.40 -$61.86 million ($7.95) -0.01
Cinedigm $90.39 million 0.57 -$15.12 million ($2.30) -0.64

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

Profitability

This table compares Function(x) and Cinedigm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Function(x) N/A N/A N/A
Cinedigm -30.05% N/A -16.07%

Summary

Cinedigm beats Function(x) on 6 of the 9 factors compared between the two stocks.

Function(x) Company Profile

Function(x) Inc., formerly DraftDay Fantasy Sports, Inc., is a diversified media and entertainment company. The Company conducts three lines of businesses, which are digital publishing through Wetpaint.com, Inc. (Wetpaint) and Rant, Inc. (Rant); fantasy sports gaming through DraftDay Gaming Group, Inc. (DDGG), and digital content distribution through Choose Digital, Inc. (Choose Digital). The Company’s segments include Wetpaint, which is a media channel reporting original news stories and publishing information content covering television shows, music, celebrities, entertainment news and fashion; Choose Digital, which is a business-to-business platform for delivering digital content; DDGG, which is a business-to-business operator of daily fantasy sports, and Other. The Company’s digital publishing business also includes Rant, which is a digital publisher that publishes original content in over 13 verticals, such as in sports, entertainment, pets, cars and food.

Cinedigm 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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