International Media Acquisition (NASDAQ:IMAQ) versus Lionsgate Entertainment (NYSE:LION) Critical Contrast

International Media Acquisition (NASDAQ:IMAQ) and Lionsgate Entertainment (NYSE:LION) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Institutional and Insider Ownership

25.9% of International Media Acquisition shares are held by institutional investors. Comparatively, 34.0% of Lionsgate Entertainment shares are held by institutional investors. 83.7% of International Media Acquisition shares are held by insiders. Comparatively, 21.3% of Lionsgate Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

International Media Acquisition has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Lionsgate Entertainment has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares International Media Acquisition and Lionsgate Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Media Acquisition	N/A	N/A	-6.41%
Lionsgate Entertainment	-7.34%	-57.26%	-0.12%

Valuation and Earnings

This table compares International Media Acquisition and Lionsgate Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Media Acquisition	N/A	N/A	-$810,000.00	N/A	N/A
Lionsgate Entertainment	$3.87 billion	0.49	-$1.11 billion	($1.24)	-6.35

International Media Acquisition has higher earnings, but lower revenue than Lionsgate Entertainment.

Analyst Ratings

This is a summary of current ratings and recommmendations for International Media Acquisition and Lionsgate Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Media Acquisition	0	0	0	0	0.00
Lionsgate Entertainment	0	2	0	1	2.67

Lionsgate Entertainment has a consensus price target of $9.00, indicating a potential upside of 14.36%. Given Lionsgate Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Lionsgate Entertainment is more favorable than International Media Acquisition.

Summary

Lionsgate Entertainment beats International Media Acquisition on 7 of the 11 factors compared between the two stocks.

About International Media Acquisition

International Media Acquisition Corp. does not have significant operations. The company intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the media and entertainment sector. International Media Acquisition Corp. was incorporated in 2021 and is based in North Brunswick, New Jersey.

About Lionsgate Entertainment

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.