Lionsgate Entertainment (NYSE:LION – Get Free Report) and Seven Arts Entertainment (OTCMKTS:SAPX – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Volatility and Risk
Lionsgate Entertainment has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Seven Arts Entertainment has a beta of 3.29, suggesting that its stock price is 229% more volatile than the S&P 500.
Institutional & Insider Ownership
34.0% of Lionsgate Entertainment shares are owned by institutional investors. 9.4% of Lionsgate Entertainment shares are owned by company insiders. Comparatively, 27.7% of Seven Arts Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lionsgate Entertainment | $4.02 billion | 0.49 | -$1.11 billion | ($1.24) | -5.50 |
| Seven Arts Entertainment | $20,000.00 | 59.96 | -$110,000.00 | N/A | N/A |
Seven Arts Entertainment has lower revenue, but higher earnings than Lionsgate Entertainment.
Profitability
This table compares Lionsgate Entertainment and Seven Arts Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lionsgate Entertainment | -7.34% | -57.26% | -0.12% |
| Seven Arts Entertainment | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Lionsgate Entertainment and Seven Arts Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lionsgate Entertainment | 0 | 3 | 0 | 1 | 2.50 |
| Seven Arts Entertainment | 0 | 0 | 0 | 0 | 0.00 |
Lionsgate Entertainment currently has a consensus target price of $8.50, indicating a potential upside of 24.63%. Given Lionsgate Entertainment’s stronger consensus rating and higher probable upside, research analysts clearly believe Lionsgate Entertainment is more favorable than Seven Arts Entertainment.
Summary
Seven Arts Entertainment beats Lionsgate Entertainment on 7 of the 12 factors compared between the two stocks.
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.
About Seven Arts Entertainment
Seven Arts Entertainment, Inc. operates as an independent motion picture production and distribution company. It acquires, develops, finances, produces, and licenses theatrical motion pictures for exhibition in theatrical markets worldwide. The company also provides its motion pictures in other forms of media, including home video, and pays and frees television. It owns interests in approximately 39 completed motion pictures. In addition, the company licenses distribution rights in its motion pictures; produces and distributes recorded music; and operates a film production and post-production facility in New Orleans, Louisiana. The company was formerly known as Seven Arts Pictures, Plc and changed its name to Seven Arts Entertainment, Inc. The company is based in Los Angeles, California.
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