IMAX Corporation (IMAX) vs Sphere Entertainment Co. (SPHR)

IMAX Corporation and Sphere Entertainment Co. are both Entertainment companies. Sphere Entertainment Co. is the larger, with a market value of $4.0B against $2.6B — 1.5× the size. Sphere Entertainment Co. has negative trailing earnings, so its P/E is not meaningful; IMAX Corporation trades at 19.9×. Sphere Entertainment Co. grew revenue faster over the last twelve months: 29.9% against 28.2%. IMAX Corporation has the higher net margin (27.7% vs 0.00%) and the higher return on invested capital (21.3% vs −7.69%). Across the 21 metrics below, IMAX Corporation leads on 13 and Sphere Entertainment Co. on 8.

Valuation

Metric IMAX SPHR Entertainment median
P/E 19.90 n/m 24.17
P/S 5.52 3.01 1.36
P/B 4.53 2.09 1.75
Price to free cash flow 18.96 13.74 17.36
EV/EBITDA 12.17 19.28 8.85
EV/Sales 5.17 3.19 1.68
Earnings yield 5.03% (3.82%) (1.47%)
Free cash flow yield 5.27% 7.28% 3.98%

Profitability

Metric IMAX SPHR Entertainment median
Gross margin 63.46% 0.00% 40.04%
Operating margin 26.80% (19.41%) 2.30%
Net margin 27.70% 0.00% 0.00%
Free cash flow margin 29.11% 24.82% 4.34%
Return on equity 26.15% 0.00% 2.72%
Return on assets 13.97% 0.00% 0.00%
Return on invested capital 21.25% (7.69%) 0.55%

Growth

Metric IMAX SPHR Entertainment median
Revenue growth (TTM) 28.15% 29.89% 8.28%
EPS growth (last fiscal year) 31.25% 113.02% 9.67%
Revenue growth, 5-year CAGR 24.52% (3.21%) 10.07%
Net income growth, 5-year CAGR 0.00% (28.74%) 0.00%

Health

Metric IMAX SPHR Entertainment median
Debt to equity 0.00 0.36 0.46
Current ratio 0.00 1.17 1.00
Net debt to EBITDA (0.78) 2.25 0.97

Dividend

Metric IMAX SPHR Entertainment median
Dividend yield — — 1.23%
Payout ratio — — 0.26

Size

Metric IMAX SPHR Entertainment median
Market cap 2.64b 4.03b 3.27b

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