Head to Head Analysis: Cineplex (OTCMKTS:CPXGF) and Marcus (NYSE:MCS)

Marcus (NYSE:MCS) and Cineplex (OTCMKTS:CPXGF) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Institutional and Insider Ownership

81.6% of Marcus shares are owned by institutional investors. Comparatively, 42.8% of Cineplex shares are owned by institutional investors. 5.0% of Marcus shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Marcus pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Cineplex pays an annual dividend of $1.47 per share and has a dividend yield of 17.9%. Marcus pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cineplex pays out 144.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Marcus and Cineplex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marcus	$684.87 million	0.70	$14.79 million	$0.24	61.88
Cineplex	N/A	N/A	N/A	$1.02	8.04

Marcus has higher revenue and earnings than Cineplex. Cineplex is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Marcus and Cineplex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus	-3.11%	-1.36%	-0.60%
Cineplex	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Marcus and Cineplex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus	0	0	3	0	3.00
Cineplex	0	0	0	0	N/A

Marcus presently has a consensus target price of $19.33, indicating a potential upside of 30.19%. Cineplex has a consensus target price of $9.00, indicating a potential upside of 10.16%. Given Marcus’ higher probable upside, equities research analysts plainly believe Marcus is more favorable than Cineplex.

Summary

Marcus beats Cineplex on 7 of the 12 factors compared between the two stocks.

About Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

About Cineplex

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Location-Based Entertainment. The company engages in theatre exhibitions and food service activities; and provision of alternative programming service comprising international film programming, as well as content offered under the Event Cinema brand, including The Metropolitan Opera, sporting events, concerts, and dedicated event screens. The company also operates cineplex.com, a website that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce solutions; Cineplex mobile app; and the Cineplex Store, which provides transactional video-on-demand, including Home Premiere services, such as premium video on demand and premium electronic sell through services. In addition, it incorporates advertising mediums related to theatre exhibition; and offers digital signage solutions and in-store retail media networks for various brands in shopping centers, restaurants, retailers, and entertainment destinations. Further, the company operates location-based entertainment establishments, including The Rec Room, a social entertainment destination for millennials that offers a range of entertainment options, such as simulation, redemption, video, recreational gaming, attractions, and a live entertainment venue for watching entertainment programming; Playdium, a complex designed for teens and families; and Cineplex Junxion, an entertainment concept for movies, amusement gaming, dining, and live performances, as well as in-theatre gaming centers. Additionally, it offers Scene+, a customer loyalty program designed to offer members discounts and the opportunity to earn and redeem points. Cineplex Inc. was founded in 1912 and is headquartered in Toronto, Canada.