IMAX Corporation (IMAX) vs Lionsgate Studios Corp. (LION)

IMAX Corporation and Lionsgate Studios Corp. are both Entertainment companies. Lionsgate Studios Corp. is the larger, with a market value of $3.8B against $2.8B — 1.3× the size. Lionsgate Studios Corp. has negative trailing earnings, so its P/E is not meaningful; IMAX Corporation trades at 69.3×. IMAX Corporation grew revenue faster over the last twelve months: 14.8% against 9.86%. IMAX Corporation has the higher net margin (9.84% vs −4.11%) and the lower return on invested capital (16.0% vs 27.2%). Across the 18 metrics below, IMAX Corporation leads on 10 and Lionsgate Studios Corp. on 8.

Valuation

Metric IMAX LION Entertainment median
P/E 69.31 n/m 28.64
P/S 6.86 1.29 1.38
P/B 6.35 n/m 1.77
Price to free cash flow 23.32 38.20 17.74
EV/EBITDA 18.42 4.26 9.57
EV/Sales 6.57 1.80 1.76
Earnings yield 1.44% (3.22%) (1.52%)
Free cash flow yield 4.29% 2.62% 3.70%

Profitability

Metric IMAX LION Entertainment median
Gross margin 59.63% 100.00% 45.11%
Operating margin 20.16% 4.62% 2.30%
Net margin 9.84% (4.11%) 0.00%
Free cash flow margin 29.44% 3.37% 4.34%
Return on equity 9.58% 10.37% 2.40%
Return on assets 4.58% (2.26%) 0.00%
Return on invested capital 15.95% 27.20% 0.55%

Growth

Metric IMAX LION Entertainment median
Revenue growth (TTM) 14.79% 9.86% 6.81%
EPS growth (last fiscal year) 31.25% 51.05% 9.67%
Revenue growth, 5-year CAGR 24.52% — 10.07%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric IMAX LION Entertainment median
Debt to equity 0.09 (1.63) 0.46
Current ratio 1.24 0.44 1.06
Net debt to EBITDA (0.78) 1.40 0.97

Dividend

Metric IMAX LION Entertainment median
Dividend yield — — 1.21%
Payout ratio — — 0.20

Size

Metric IMAX LION Entertainment median
Market cap 2.84b 3.78b 3.25b

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