Analyzing Studio City Ih (NYSE:MSC) and Marcus (NYSE:MCS)

Marcus (NYSE:MCS) and Studio City Ih (NYSE:MSC) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Profitability

This table compares Marcus and Studio City Ih’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus	1.02%	1.71%	0.76%
Studio City Ih	-9.66%	-10.34%	-2.17%

Insider and Institutional Ownership

81.6% of Marcus shares are held by institutional investors. 15.8% of Marcus shares are held by company insiders. Comparatively, 54.9% of Studio City Ih shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Marcus and Studio City Ih, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus	0	2	3	1	2.83
Studio City Ih	1	0	0	0	1.00

Marcus currently has a consensus price target of $23.75, suggesting a potential upside of 47.52%. Given Marcus’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Marcus is more favorable than Studio City Ih.

Volatility & Risk

Marcus has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Studio City Ih has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500.

Earnings & Valuation

This table compares Marcus and Studio City Ih”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marcus	$735.56 million	0.67	-$7.79 million	$0.24	67.08
Studio City Ih	$639.15 million	1.15	-$105.83 million	($0.34)	-10.22

Marcus has higher revenue and earnings than Studio City Ih. Studio City Ih is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.

Summary

Marcus beats Studio City Ih on 13 of the 15 factors compared between the two stocks.

About Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

About Studio City Ih

Studio City International Holdings Limited operates an entertainment resort in Macau. It operates Studio City Casino, comprising gaming tables, including tables for VIP rolling chip operations and gaming machines; and resort, which offers various non-gaming attractions, including figure-8 ferris wheel, night club and karaoke venue, live performance arena, and an outdoor and indoor water park, as well as hotel rooms and various food and beverage establishments, and retail space. The company was formerly known as Cyber One Agents Limited and changed its name to Studio City International Holdings Limited in January 2012. The company was founded in 2000 and is based in Central, Hong Kong. Studio City International Holdings Limited is a subsidiary of MCO Cotai Investments Limited.