Critical Survey: Cinemark (CNK) and TIX (TIXC)
Cinemark (NYSE:CNK) and TIX (OTCMKTS:TIXC) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Cinemark pays an annual dividend of $1.28 per share and has a dividend yield of 3.1%. TIX does not pay a dividend. Cinemark pays out 56.6% of its earnings in the form of a dividend. Cinemark has increased its dividend for 2 consecutive years.
This table compares Cinemark and TIX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
99.2% of Cinemark shares are held by institutional investors. 8.9% of Cinemark shares are held by company insiders. Comparatively, 37.5% of TIX shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Cinemark has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, TIX has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Valuation and Earnings
This table compares Cinemark and TIX’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cinemark||$2.99 billion||1.62||$264.18 million||$2.26||18.38|
|TIX||$17.40 million||0.29||-$4.68 million||N/A||N/A|
Cinemark has higher revenue and earnings than TIX.
This is a summary of current ratings for Cinemark and TIX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cinemark presently has a consensus target price of $44.00, suggesting a potential upside of 5.95%. Given Cinemark’s higher possible upside, analysts clearly believe Cinemark is more favorable than TIX.
Cinemark beats TIX on 12 of the 14 factors compared between the two stocks.
Cinemark Company Profile
Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. It operates theatres in the United States, Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao, and Paraguay. As of June 30, 2018, the company operated 539 theatres and 5,998 screens. Cinemark Holdings, Inc. was incorporated in 2006 and is headquartered in Plano, Texas.
TIX Company Profile
Tix Corporation, through its subsidiary, Tix4Tonight, LLC, operates as an entertainment company in the United States. The company provides discount ticketing and discount dinner reservations services. It offers discount tickets under short-term, exclusive, and nonexclusive agreements in Las Vegas at a discount of up to 50 percent for same-day shows, concerts, attractions, and sporting events. The company also provides reservations for discounted dinners at various restaurants surrounding the Las Vegas strip and downtown. As of February 21, 2017, it operated 10 discount ticket stores in Las Vegas under its Tix4Tonight marquee. The company was formerly known as Cinema Ride, Inc. and changed its name to Tix Corporation in March 2005. Tix Corporation was founded in 1993 and is headquartered in Studio City, California.
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