Seven Arts Entertainment (OTCMKTS:SAPX) and IMAX (NYSE:IMAX) Head to Head Review

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Seven Arts Entertainment and IMAX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven Arts Entertainment	0	0	0	0	0.00
IMAX	1	1	8	1	2.82

IMAX has a consensus price target of $32.80, indicating a potential upside of 27.78%. Given IMAX’s stronger consensus rating and higher possible upside, analysts plainly believe IMAX is more favorable than Seven Arts Entertainment.

Earnings and Valuation

This table compares Seven Arts Entertainment and IMAX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven Arts Entertainment	N/A	N/A	-$110,000.00	N/A	N/A
IMAX	$352.21 million	3.92	$26.06 million	$0.60	42.78

IMAX has higher revenue and earnings than Seven Arts Entertainment.

Volatility & Risk

Seven Arts Entertainment has a beta of 3.06, suggesting that its share price is 206% more volatile than the S&P 500. Comparatively, IMAX has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares Seven Arts Entertainment and IMAX’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	-109.32%
IMAX	9.04%	8.62%	3.89%

Institutional and Insider Ownership

93.5% of IMAX shares are owned by institutional investors. 27.7% of Seven Arts Entertainment shares are owned by insiders. Comparatively, 23.2% of IMAX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

IMAX beats Seven Arts Entertainment on 10 of the 12 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 IMAX

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies. It also offers preventative and emergency maintenance services and quality monitoring to the IMAX network; film post-production services; and IMAX film and digital cameras to content creators. In addition, the company engages in the distribution of large-format documentary films to institutional theaters, as well as live performances and interactive events with artists and creators; after-market sales of IMAX System parts and 3D glasses; sale or lease of IMAX theater systems; provision of management services to three other theaters, as well as production advice and technical assistance to documentary and Hollywood filmmakers; and rental of company’s proprietary 2D and 3D large-format film cameras. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It offers its services under the IMAX, IMAX 3D, Experience It In IMAX, The IMAX Experience, DMR, Filmed For IMAXTM, IMAX Live, IMAX Enhanced, and SSIMWAVE. The company operates a network of IMAX systems comprising commercial multiplexes, commercial destinations, and institutional locations in 90 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.