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

Risk & Volatility

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

Valuation & Earnings

This table compares Lions Gate Entertainment Corp. and its competitors gross 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 140.28

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

Profitability

This table compares Lions Gate Entertainment Corp. and its competitors’ 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 2.98% 11.10% 3.72%

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 increased its dividend for 2 consecutive years. Lions Gate Entertainment Corp. lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Lions Gate Entertainment Corp. and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lions Gate Entertainment Corp. 0 2 15 0 2.88
Lions Gate Entertainment Corp. Competitors 105 481 1232 24 2.64

Lions Gate Entertainment Corp. currently has a consensus price target of $31.63, suggesting a potential upside of 21.22%. As a group, “Entertainment Production” companies have a potential upside of 9.84%. Given Lions Gate Entertainment Corp.’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Lions Gate Entertainment Corp. is more favorable than its competitors.

Insider & Institutional Ownership

96.7% of Lions Gate Entertainment Corp. shares are held by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are held by institutional investors. 30.4% of Lions Gate Entertainment Corp. shares are held by insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

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

About Lions Gate Entertainment Corp.

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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