TIX (TIXC) versus Cinemark (CNK) Critical Survey

TIX (OTCMKTS:TIXC) and Cinemark (NYSE:CNK) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Dividends

Cinemark pays an annual dividend of $1.28 per share and has a dividend yield of 3.3%. TIX does not pay a dividend. Cinemark pays out 56.6% of its earnings in the form of a dividend. Cinemark has increased its dividend for 2 consecutive years.

Volatility & Risk

TIX has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Cinemark has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for TIX and Cinemark, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIX 0 0 0 0 N/A
Cinemark 0 2 7 0 2.78

Cinemark has a consensus price target of $44.00, suggesting a potential upside of 14.67%. Given Cinemark’s higher possible upside, analysts plainly believe Cinemark is more favorable than TIX.

Institutional & Insider Ownership

98.7% of Cinemark shares are held by institutional investors. 37.5% of TIX shares are held by insiders. Comparatively, 8.9% of Cinemark shares are held 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.

Profitability

This table compares TIX and Cinemark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIX -50.81% -11.59% -10.39%
Cinemark 9.12% 19.92% 6.53%

Earnings and Valuation

This table compares TIX and Cinemark’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TIX $17.40 million 0.29 -$4.68 million N/A N/A
Cinemark $2.99 billion 1.50 $264.18 million $2.26 16.98

Cinemark has higher revenue and earnings than TIX.

Summary

Cinemark beats TIX on 12 of the 14 factors compared between the two stocks.

About TIX

Tix Corporation, through its subsidiary, Tix4Tonight, LLC, operates as an entertainment company in the United States. The company provides discount ticketing and discount dinner reservations services. It offers discount tickets under short-term, exclusive, and nonexclusive agreements in Las Vegas at a discount of up to 50 percent for same-day shows, concerts, attractions, and sporting events. The company also provides reservations for discounted dinners at various restaurants surrounding the Las Vegas strip and downtown. As of February 21, 2017, it operated 10 discount ticket stores in Las Vegas under its Tix4Tonight marquee. The company was formerly known as Cinema Ride, Inc. and changed its name to Tix Corporation in March 2005. Tix Corporation was founded in 1993 and is headquartered in Studio City, California.

About Cinemark

Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. As of October 15, 2018, it operated 539 theatres with 5,998 screens in 41 states of the United States, Brazil, Argentina, Chile, and 12 other Latin American countries. The company was incorporated in 2006 and is headquartered in Plano, Texas.

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