Head-To-Head Analysis: Cineplex (OTCMKTS:CPXGF) and Paramount Skydance (NASDAQ:PSKY)

Paramount Skydance (NASDAQ:PSKY) and Cineplex (OTCMKTS:CPXGF) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Paramount Skydance and Cineplex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Skydance	9	5	1	0	1.47
Cineplex	0	1	2	0	2.67

Paramount Skydance currently has a consensus target price of $14.00, indicating a potential upside of 15.23%. Given Paramount Skydance’s higher possible upside, analysts clearly believe Paramount Skydance is more favorable than Cineplex.

Earnings & Valuation

This table compares Paramount Skydance and Cineplex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Skydance	$29.21 billion	0.45	-$6.19 billion	($0.03)	-405.00
Cineplex	N/A	N/A	N/A	$1.02	7.79

Cineplex has lower revenue, but higher earnings than Paramount Skydance. Paramount Skydance is trading at a lower price-to-earnings ratio than Cineplex, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Paramount Skydance and Cineplex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paramount Skydance	-0.95%	3.95%	1.41%
Cineplex	N/A	N/A	N/A

Dividends

Paramount Skydance pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Cineplex pays an annual dividend of $1.47 per share and has a dividend yield of 18.5%. Paramount Skydance pays out -666.7% of its earnings in the form of a dividend. Cineplex pays out 144.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

73.0% of Paramount Skydance shares are owned by institutional investors. Comparatively, 42.8% of Cineplex shares are owned by institutional investors. 0.4% of Paramount Skydance shares 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

Paramount Skydance beats Cineplex on 7 of the 13 factors compared between the two stocks.

About Paramount Skydance

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.

About Cineplex

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Location-Based Entertainment. The company engages in theatre exhibitions and food service activities; and provision of alternative programming service comprising international film programming, as well as content offered under the Event Cinema brand, including The Metropolitan Opera, sporting events, concerts, and dedicated event screens. The company also operates cineplex.com, a website that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce solutions; Cineplex mobile app; and the Cineplex Store, which provides transactional video-on-demand, including Home Premiere services, such as premium video on demand and premium electronic sell through services. In addition, it incorporates advertising mediums related to theatre exhibition; and offers digital signage solutions and in-store retail media networks for various brands in shopping centers, restaurants, retailers, and entertainment destinations. Further, the company operates location-based entertainment establishments, including The Rec Room, a social entertainment destination for millennials that offers a range of entertainment options, such as simulation, redemption, video, recreational gaming, attractions, and a live entertainment venue for watching entertainment programming; Playdium, a complex designed for teens and families; and Cineplex Junxion, an entertainment concept for movies, amusement gaming, dining, and live performances, as well as in-theatre gaming centers. Additionally, it offers Scene+, a customer loyalty program designed to offer members discounts and the opportunity to earn and redeem points. Cineplex Inc. was founded in 1912 and is headquartered in Toronto, Canada.