Head-To-Head Contrast: Seven Arts Entertainment (OTCMKTS:SAPX) versus Lionsgate Entertainment (NYSE:LION)

Seven Arts Entertainment (OTCMKTS:SAPX) and Lionsgate Entertainment (NYSE:LION) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Insider and Institutional Ownership

34.0% of Lionsgate Entertainment shares are owned by institutional investors. 27.7% of Seven Arts Entertainment shares are owned by insiders. Comparatively, 9.4% of Lionsgate Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Seven Arts Entertainment and Lionsgate Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven Arts Entertainment	N/A	N/A	N/A
Lionsgate Entertainment	-7.34%	-57.26%	-0.12%

Earnings and Valuation

This table compares Seven Arts Entertainment and Lionsgate Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven Arts Entertainment	$20,000.00	59.96	-$110,000.00	N/A	N/A
Lionsgate Entertainment	$4.02 billion	0.46	-$1.11 billion	($0.43)	-14.77

Seven Arts Entertainment has higher earnings, but lower revenue than Lionsgate Entertainment.

Volatility and Risk

Seven Arts Entertainment has a beta of 3.12, suggesting that its share price is 212% more volatile than the S&P 500. Comparatively, Lionsgate Entertainment has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Seven Arts Entertainment and Lionsgate Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven Arts Entertainment	0	0	0	0	0.00
Lionsgate Entertainment	0	3	4	1	2.75

Lionsgate Entertainment has a consensus target price of $8.86, suggesting a potential upside of 39.48%. Given Lionsgate Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Lionsgate Entertainment is more favorable than Seven Arts Entertainment.

Summary

Seven Arts Entertainment beats Lionsgate Entertainment on 7 of the 13 factors compared between the two stocks.

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.

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.