Manchester United (NYSE:MANU) and Premier Exhibitions (OTCMKTS:PRXIQ) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
85.2% of Manchester United shares are owned by institutional investors. 33.0% of Premier Exhibitions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Manchester United and Premier Exhibitions’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Manchester United||$794.68 million||0.91||-$50.20 million||$0.14||128.43|
Premier Exhibitions has lower revenue, but higher earnings than Manchester United.
This is a breakdown of recent ratings and target prices for Manchester United and Premier Exhibitions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Manchester United currently has a consensus price target of $23.67, suggesting a potential upside of 31.63%. Given Manchester United’s higher probable upside, equities analysts plainly believe Manchester United is more favorable than Premier Exhibitions.
Manchester United pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Premier Exhibitions does not pay a dividend. Manchester United pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manchester United has raised its dividend for 2 consecutive years.
This table compares Manchester United and Premier Exhibitions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Manchester United has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Premier Exhibitions has a beta of 2.69, suggesting that its stock price is 169% more volatile than the S&P 500.
Manchester United beats Premier Exhibitions on 8 of the 12 factors compared between the two stocks.
About Manchester United
Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. The company operates Manchester United Football Club, a professional football club. It develops marketing and sponsorship relationships with international and regional companies to leverage its brand. The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company's partners' wholesale distribution channels. In addition, it distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, the company offers a direct to consumer subscription mobile application in 167 territories; and operates Old Trafford, a sports venue with 74,989 seats. Manchester United plc was founded in 1878 and is based in Manchester, the United Kingdom. Manchester United plc is a subsidiary of Red Football LLC.
About Premier Exhibitions
Premier Exhibitions, Inc., together with its subsidiaries, engages in presenting museum-quality touring exhibitions to public worldwide. It operates through two segments, Exhibition Management and RMS Titanic. It develops, deploys, operates, and presents exhibition products in exhibition centers, museums, and non-traditional venues. The company operates and manages various exhibitions, such as Titanic: The Artifact Exhibition' that features the artifacts recovered from the wreck site; Titanic: The Experience, a Titanic-themed exhibition; and Bodies…The Exhibition' and Bodies Revealed', which display multiple human anatomy sets that contain a collection of whole human body specimens, and single human organs and body parts. It also operates and manages Pompeii: One Day in Pompeii', which features the artifacts recovered from the debris of the city of Pompeii; Real Pirates' that tells the story of the Whydah, the first authenticated pirate shipwreck in U.S. waters, and the stories of the people whose lives converged on the vessel; and The Discovery of King Tut', an exhibition based on King Tutankhamun. In addition, the company sells merchandise, such as apparel, posters, gifts, and jewelry related to its shows over the Internet; publishes exhibition catalogs; and provides ancillary services, such as audio tours, as well as sells visitor exhibition themed photographs at its exhibition gift shops. Premier Exhibitions, Inc. was founded in 1987 and is based in Atlanta, Georgia.
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