Contrasting Lionsgate Studios (NYSE:LION) and Reading International (NASDAQ:RDIB)

Reading International (NASDAQ:RDIB) and Lionsgate Studios (NYSE:LION) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Reading International and Lionsgate Studios, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	1	0	0	0	1.00
Lionsgate Studios	2	2	8	0	2.50

Lionsgate Studios has a consensus target price of $15.16, indicating a potential upside of 33.69%. Given Lionsgate Studios’ stronger consensus rating and higher possible upside, analysts clearly believe Lionsgate Studios is more favorable than Reading International.

Insider & Institutional Ownership

0.4% of Reading International shares are held by institutional investors. 5.4% of Reading International shares are held by insiders. Comparatively, 31.9% of Lionsgate Studios shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Reading International and Lionsgate Studios’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reading International	N/A	N/A	N/A
Lionsgate Studios	-4.10%	N/A	-0.44%

Earnings and Valuation

This table compares Reading International and Lionsgate Studios”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reading International	$214.46 million	N/A	N/A	($0.20)	-62.91
Lionsgate Studios	$2.63 billion	1.28	-$198.30 million	($0.42)	-27.00

Reading International has higher earnings, but lower revenue than Lionsgate Studios. Reading International is trading at a lower price-to-earnings ratio than Lionsgate Studios, indicating that it is currently the more affordable of the two stocks.

Summary

Lionsgate Studios beats Reading International on 6 of the 10 factors compared between the two stocks.

About Reading International

Reading International, Inc. is an entertainment and real estate company, which engages in the development, ownership, and operation of multiplex cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. It operates through the Cinema Exhibition and Real Estate segments. The Cinema Exhibition segment includes Reading Cinemas, Angelika Film Center, Consolidated Theatres, City Cinemas, 44 Union Square, and Liberty Theatres brands. The Real Estate segment comprises real estate development and the rental or licensing of retail, commercial and live theater assets. The company was founded by James J. Cotter Sr. in 1999 and is headquartered in Culver City, CA.

About Lionsgate Studios

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.