Imax Corporation (NYSE: IMAX) and Cinemark Holdings (NYSE:CNK) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Cinemark Holdings pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. Imax Corporation does not pay a dividend. Cinemark Holdings pays out 49.6% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Imax Corporation and Cinemark Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Imax Corporation currently has a consensus target price of $34.82, indicating a potential upside of 73.22%. Cinemark Holdings has a consensus target price of $43.06, indicating a potential upside of 27.22%. Given Imax Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Imax Corporation is more favorable than Cinemark Holdings.
Risk and Volatility
Imax Corporation has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Cinemark Holdings has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Institutional and Insider Ownership
83.7% of Imax Corporation shares are owned by institutional investors. Comparatively, 90.2% of Cinemark Holdings shares are owned by institutional investors. 18.9% of Imax Corporation shares are owned by company insiders. Comparatively, 9.1% of Cinemark Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Imax Corporation and Cinemark Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Imax Corporation and Cinemark Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Imax Corporation||$349.35 million||3.72||$72.50 million||$0.14||143.58|
|Cinemark Holdings||$3.00 billion||1.31||$678.63 million||$2.34||14.47|
Cinemark Holdings has higher revenue and earnings than Imax Corporation. Cinemark Holdings is trading at a lower price-to-earnings ratio than Imax Corporation, indicating that it is currently the more affordable of the two stocks.
Cinemark Holdings beats Imax Corporation on 9 of the 16 factors compared between the two stocks.
About Imax Corporation
IMAX Corporation is an entertainment technology company. The Company operates through seven segments: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production, and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment provides IMAX theater projection system equipment to exhibitors. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films. The film post-production segment provides film post-production and film print services. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.
About Cinemark Holdings
Cinemark Holdings, Inc. is engaged in the motion picture exhibition business with theatres in the United States (U.S.), Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Paraguay, Curacao and Bolivia. The Company manages its business in two segments: U.S. markets and international markets. The international segment consists of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. As of December 31, 2016, the Company operated 526 theatres and 5,903 screens in the United States and Latin America. As of December 31, 2016, its the United States circuit had 339 theatres and 4,559 screens in 41 states and its international circuit had 187 theatres and 1,344 screens in 15 countries. It develops new platforms for its theatre circuit, such as XD, Cinemark Reserve, Luxury Lounger reclining seats, CineArts and other concepts.
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