Comparing Paramount Skydance (NASDAQ:PSKY) & IMAX (NYSE:IMAX)

IMAX (NYSE:IMAX) and Paramount Skydance (NASDAQ:PSKY) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

93.5% of IMAX shares are owned by institutional investors. Comparatively, 73.0% of Paramount Skydance shares are owned by institutional investors. 20.6% of IMAX shares are owned by insiders. Comparatively, 0.4% of Paramount Skydance shares are owned by 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.

Valuation & Earnings

This table compares IMAX and Paramount Skydance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IMAX	$410.21 million	7.09	$34.88 million	$0.72	73.62
Paramount Skydance	$28.89 billion	0.42	-$621.00 million	$0.29	37.07

IMAX has higher earnings, but lower revenue than Paramount Skydance. Paramount Skydance is trading at a lower price-to-earnings ratio than IMAX, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

IMAX has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Paramount Skydance has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for IMAX and Paramount Skydance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IMAX	0	3	10	0	2.77
Paramount Skydance	8	5	2	0	1.60

IMAX presently has a consensus target price of $52.36, indicating a potential downside of 1.22%. Paramount Skydance has a consensus target price of $11.38, indicating a potential upside of 5.90%. Given Paramount Skydance’s higher probable upside, analysts clearly believe Paramount Skydance is more favorable than IMAX.

Profitability

This table compares IMAX and Paramount Skydance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IMAX	9.84%	15.47%	7.49%
Paramount Skydance	-2.13%	4.11%	1.21%

Summary

IMAX beats Paramount Skydance on 11 of the 14 factors compared between the two stocks.

About IMAX

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies. It also offers preventative and emergency maintenance services and quality monitoring to the IMAX network; film post-production services; and IMAX film and digital cameras to content creators. In addition, the company engages in the distribution of large-format documentary films to institutional theaters, as well as live performances and interactive events with artists and creators; after-market sales of IMAX System parts and 3D glasses; sale or lease of IMAX theater systems; provision of management services to three other theaters, as well as production advice and technical assistance to documentary and Hollywood filmmakers; and rental of company’s proprietary 2D and 3D large-format film cameras. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It offers its services under the IMAX, IMAX 3D, Experience It In IMAX, The IMAX Experience, DMR, Filmed For IMAXTM, IMAX Live, IMAX Enhanced, and SSIMWAVE. The company operates a network of IMAX systems comprising commercial multiplexes, commercial destinations, and institutional locations in 90 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

About Paramount Skydance

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.