Lions Gate Entertainment (NYSE:LGF.A) and Entertainment One (OTCMKTS:ENTMF) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Valuation & Earnings
This table compares Lions Gate Entertainment and Entertainment One’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lions Gate Entertainment||$4.13 billion||0.91||$473.60 million||$1.23||14.31|
|Entertainment One||$1.42 billion||1.53||N/A||N/A||N/A|
Lions Gate Entertainment has higher revenue and earnings than Entertainment One.
This is a breakdown of current recommendations and price targets for Lions Gate Entertainment and Entertainment One, 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 currently has a consensus price target of $31.22, indicating a potential upside of 77.40%. Given Lions Gate Entertainment’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lions Gate Entertainment is more favorable than Entertainment One.
Lions Gate Entertainment pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. Entertainment One does not pay a dividend. Lions Gate Entertainment pays out 29.3% of its earnings in the form of a dividend.
Insider and Institutional Ownership
36.0% of Lions Gate Entertainment shares are held by institutional investors. 25.0% of Lions Gate Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Lions Gate Entertainment and Entertainment One’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%|
Risk & Volatility
Lions Gate Entertainment has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Entertainment One has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.
Lions Gate Entertainment beats Entertainment One on 11 of the 13 factors compared between the two stocks.
Entertainment One Company Profile
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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