Lions Gate Entertainment Corp. (NYSE: LGF) is one of 25 publicly-traded companies in the “Entertainment Production” industry, but how does it weigh in compared to its peers? We will compare Lions Gate Entertainment Corp. to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, dividends and analyst recommendations.

Profitability

This table compares Lions Gate Entertainment Corp. and its peers’ 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%
Lions Gate Entertainment Corp. Competitors 2.73% 10.89% 3.54%

Dividends

Lions Gate Entertainment Corp. pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. 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. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend. Lions Gate Entertainment Corp. has raised its dividend for 2 consecutive years. Lions Gate Entertainment Corp. lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Lions Gate Entertainment Corp. and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Lions Gate Entertainment Corp. N/A N/A 118.60
Lions Gate Entertainment Corp. Competitors $6.27 billion $1.49 billion 43.05

Lions Gate Entertainment Corp.’s peers have higher revenue and earnings than Lions Gate Entertainment Corp.. Lions Gate Entertainment Corp. is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Lions Gate Entertainment Corp. and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lions Gate Entertainment Corp. 0 1 16 0 2.94
Lions Gate Entertainment Corp. Competitors 142 538 1248 31 2.60

Lions Gate Entertainment Corp. currently has a consensus target price of $31.63, suggesting a potential upside of 21.22%. As a group, “Entertainment Production” companies have a potential upside of 13.15%. Given Lions Gate Entertainment Corp.’s stronger consensus rating and higher possible upside, research analysts plainly believe Lions Gate Entertainment Corp. is more favorable than its peers.

Risk and Volatility

Lions Gate Entertainment Corp. has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Lions Gate Entertainment Corp.’s peers have a beta of 0.92, suggesting that their average stock price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

96.7% of Lions Gate Entertainment Corp. shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are owned by institutional investors. 30.4% of Lions Gate Entertainment Corp. shares are owned by company insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Lions Gate Entertainment Corp. beats its peers on 9 of the 13 factors compared.

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.

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