Lions Gate Entertainment Corp. (LGF) and Bona Film Group (BONA) Critical Survey
Lions Gate Entertainment Corp. (NYSE: LGF) and Bona Film Group (NASDAQ:BONA) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
This is a summary of recent ratings and target prices for Lions Gate Entertainment Corp. and Bona Film Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lions Gate Entertainment Corp.||0||1||15||0||2.94|
|Bona Film Group||0||0||0||0||N/A|
Lions Gate Entertainment Corp. presently has a consensus target price of $31.63, suggesting a potential upside of 21.22%. Given Lions Gate Entertainment Corp.’s higher probable upside, equities research analysts clearly believe Lions Gate Entertainment Corp. is more favorable than Bona Film Group.
Valuation & Earnings
This table compares Lions Gate Entertainment Corp. and Bona Film Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lions Gate Entertainment Corp.||N/A||N/A||N/A||$0.22||118.60|
|Bona Film Group||N/A||N/A||N/A||N/A||N/A|
Insider and Institutional Ownership
96.7% of Lions Gate Entertainment Corp. shares are held by institutional investors. 30.4% of Lions Gate Entertainment Corp. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Lions Gate Entertainment Corp. and Bona Film Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lions Gate Entertainment Corp.||17.36%||26.35%||7.85%|
|Bona Film Group||0.75%||1.33%||0.34%|
Lions Gate Entertainment Corp. pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. Bona Film Group does not pay a dividend. Lions Gate Entertainment Corp. pays out 122.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bona Film Group has raised its dividend for 2 consecutive years.
Lions Gate Entertainment Corp. beats Bona Film Group on 8 of the 10 factors compared between the two stocks.
Lions Gate Entertainment Corp. Company Profile
Lions Gate Entertainment Corp. is engaged in motion picture production and distribution, television programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games and location-based entertainment. The Company operates through two segments: Motion Pictures and Television Production. The Company’s Motion Pictures segment consists of the development and production of feature films, acquisition of North American and around the world distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and around the world licensing of distribution rights to feature films produced and acquired. The Company’s Television Production segment consists of the development, production and around the world distribution of television productions, including television series, television movies, and mini-series and non-fiction programming.
Bona Film Group Company Profile
Bona Film Group Limited is a vertically integrated film company. The Company operates in multiple stages of the film industry value chain, including film distribution, film investment and production, talent agency services and movie theater operations. As of December 31, 2014, the Company distributed or invested in 202 films (including 55 films internationally). The Company distributes films through virtually all of the theater circuits in China. The Company has also expanded into non-theatrical distribution channels, including home video products, digital distribution and television. In addition to its film production and distribution operations, the Company owned and operated 25 movie theaters in commercial districts and residential areas in 15 cities in China as of December 31, 2014. The Company’s operational segments include film distribution, film investment and production, talent agency and movie theater.
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