Entertainment One (OTCMKTS:ENTMF) and Lions Gate Entertainment (NYSE:LGF.A) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
This table compares Entertainment One and Lions Gate Entertainment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lions Gate Entertainment||3.29%||6.53%||2.28%|
Lions Gate Entertainment pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Entertainment One does not pay a dividend. Lions Gate Entertainment pays out 29.3% of its earnings in the form of a dividend.
Insider & Institutional Ownership
36.0% of Lions Gate Entertainment shares are owned by institutional investors. 25.0% of Lions Gate Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Entertainment One and Lions Gate Entertainment’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Entertainment One||$1.42 billion||1.54||N/A||N/A||N/A|
|Lions Gate Entertainment||$4.13 billion||1.01||$473.60 million||$1.23||15.78|
Lions Gate Entertainment has higher revenue and earnings than Entertainment One.
Volatility and Risk
Entertainment One has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Lions Gate Entertainment has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Entertainment One and Lions Gate Entertainment, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lions Gate Entertainment||0||3||7||0||2.70|
Lions Gate Entertainment has a consensus target price of $31.22, suggesting a potential upside of 60.86%. Given Lions Gate Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Lions Gate Entertainment is more favorable than Entertainment One.
Lions Gate Entertainment beats Entertainment One on 11 of the 13 factors compared between the two stocks.
About Entertainment One
Entertainment One Ltd. engages in the acquisition, development, production, financing, distribution, and sale of family, television (TV), music, and film content rights across various media worldwide. The company operates in three segments: Family & Brands, Television, and Film. It distributes and sells films on screens in theatres and digitally, on DVDs and Blu-rays, and on TV; develops, produces, and distributes TV content across genres, platforms, and territories; and records, distributes, and licenses albums and songs. The company is also involved in the merchandise sales activities, as well as in the distribution of music and video. Its content rights library includes approximately 80,000 hours of film and television content; and 40,000 music tracks. Entertainment One Ltd. was founded in 1973 and is based in Toronto, Canada.
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