IQIYI (NASDAQ:IQ) and Cinedigm (NASDAQ:CIDM) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
5.7% of IQIYI shares are held by institutional investors. Comparatively, 8.0% of Cinedigm shares are held by institutional investors. 13.9% of Cinedigm shares 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.
This table compares IQIYI and Cinedigm’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for IQIYI and Cinedigm, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IQIYI presently has a consensus price target of $29.75, suggesting a potential upside of 48.75%. Given IQIYI’s higher possible upside, research analysts clearly believe IQIYI is more favorable than Cinedigm.
Valuation & Earnings
This table compares IQIYI and Cinedigm’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cinedigm||$67.68 million||0.45||-$18.45 million||($0.81)||-1.08|
IQIYI has higher earnings, but lower revenue than Cinedigm.
IQIYI Company Profile
iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand name in China. It operates a platform that provides a collection of Internet video content, including professionally-produced content licensed from professional content providers and self-produced content. The company also operates movie theaters in China. In addition, it provides membership, content distribution, live broadcasting, and online gaming services. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is based in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu Holdings Limited.
Cinedigm Company Profile
Cinedigm Corp., together with its subsidiaries, operates as distributor and aggregator of independent movie, television, and other short form content primarily in the United States. The company operates through four segments: The First Digital Cinema Deployment, The Second Digital Cinema Deployment, Digital Cinema Services, and Media Content and Entertainment Group. It manages a library of distribution rights to various titles and episodes released across digital, physical, and home and mobile entertainment platforms, as well as services digital cinema assets on approximately 12,000 domestic and foreign movie screens. The company distributes its products for various brands, such as Hallmark, Televisa, ZDF, Shout! Factory, NFL, NHL, and Scholastic, as well as international and domestic content creators, movie producers, television producers, and other short form digital content producers. It also collaborates with producers, various brands, and other content owners to market, source, curate, and distribute content to targeted audiences through existing and emerging digital home entertainment platforms, including iTunes, Amazon Prime, Netflix, Hulu, Xbox, PlayStation, and cable video-on-demand; and distributes DVD and Blu-ray discs to wholesalers and retailers with sales coverage to approximately 60,000 brick and mortar storefronts, including Walmart, Target, Best Buy, and Amazon. In addition, the company operates various branded and curated over-the-top entertainment channels, including Docurama, CONtv, and Dove Channel. Cinedigm Corp. has a strategic alliance with Starrise Media Holdings Limited to release films in China theatrically and to digital platforms, as well as to evaluate opportunities to jointly produce Chinese/American film co-productions. The company was formerly known as Cinedigm Digital Cinema Corp. and changed its name to Cinedigm Corp. in September 2013. Cinedigm Corp. was founded in 2000 and is based in New York, New York.
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