Analyzing Redbox Entertainment (NASDAQ:RDBX) & iQIYI (NASDAQ:IQ)

Redbox Entertainment (NASDAQ:RDBXGet Rating) and iQIYI (NASDAQ:IQGet Rating) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Redbox Entertainment and iQIYI, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Redbox Entertainment 1 2 1 0 2.00
iQIYI 1 2 4 0 2.43

Redbox Entertainment currently has a consensus target price of 7.00, indicating a potential downside of 54.28%. iQIYI has a consensus target price of $8.59, indicating a potential upside of 120.71%. Given iQIYI’s stronger consensus rating and higher possible upside, analysts clearly believe iQIYI is more favorable than Redbox Entertainment.

Valuation & Earnings

This table compares Redbox Entertainment and iQIYI’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Redbox Entertainment $288.54 million 2.39 -$112.79 million N/A N/A
iQIYI $4.74 billion 0.66 -$968.14 million ($0.93) -4.19

Redbox Entertainment has higher earnings, but lower revenue than iQIYI.

Profitability

This table compares Redbox Entertainment and iQIYI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Redbox Entertainment N/A N/A -59.93%
iQIYI -15.85% -62.47% -9.14%

Volatility & Risk

Redbox Entertainment has a beta of -2.96, indicating that its share price is 396% less volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Insider and Institutional Ownership

32.7% of iQIYI shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

iQIYI beats Redbox Entertainment on 7 of the 11 factors compared between the two stocks.

Redbox Entertainment Company Profile (Get Rating)

Redbox Entertainment Inc. operates a network of self-service kiosks in the United States. It operates a network of approximately 38,000 self-service kiosks, where consumers could rent or purchase new-release DVDs and Blu-ray Discs. The company provides installation, merchandising, and break-fix services to other kiosk businesses. It also produces, acquires, and distributes movies through its film distribution label, Redbox Entertainment, LLC, providing rights to talent-led films that are distributed across the company's services, as well as through third party digital services. In addition, the company offers transactional and ad-supported digital streaming services, which include Redbox On Demand, a transactional service that provides digital rental or purchase of new release and catalog movies and TV content; Redbox Free On Demand, an ad-supported service providing free movies and TV shows on demand; and Redbox Free Live TV, an ad-supported television service giving access to approximately 100 linear channels. The company is based in Oakbrook Terrace, Illinois.

iQIYI Company Profile (Get Rating)

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People's Republic of China. The company offers various products and services comprising internet video, online games, live broadcasting, online literature, animations, e-commerce, and social media platform. 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 provides membership, content distribution, and online advertising services. In addition, it operates iQIYI Show, a live broadcasting service that enables users to follow their favorite hosts, celebrities, and shows in real time through live broadcasting; and iQIYI Lite, an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. 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 headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu Holdings Limited.

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