Reservoir Media, Inc. (RSVR) vs Starz Entertainment Corp. (STRZ)

Reservoir Media, Inc. and Starz Entertainment Corp. are both Entertainment companies. Reservoir Media, Inc. is the larger, with a market value of $625.7M against $388.9M — 1.6× the size. Starz Entertainment Corp. has negative trailing earnings, so its P/E is not meaningful; Reservoir Media, Inc. trades at 73.0×. Reservoir Media, Inc. grew revenue faster over the last twelve months: 11.4% against −6.20%. Reservoir Media, Inc. has the higher net margin (4.87% vs −34.0%) and the higher return on invested capital (2.89% vs −26.8%). Across the 19 metrics below, Reservoir Media, Inc. leads on 11 and Starz Entertainment Corp. on 8.

Valuation

Metric RSVR STRZ Entertainment median
P/E 73.00 n/m 22.03
P/S 3.47 0.28 1.47
P/B 1.65 1.20 2.00
Price to free cash flow 14.79 7.78 16.60
EV/EBITDA 14.97 n/m 9.65
EV/Sales 5.96 0.73 1.76
Earnings yield 1.37% (120.98%) (0.67%)
Free cash flow yield 6.76% 12.85% 3.26%

Profitability

Metric RSVR STRZ Entertainment median
Gross margin 64.67% 100.00% 45.02%
Operating margin 21.20% (29.23%) 2.30%
Net margin 4.87% (33.98%) 0.00%
Free cash flow margin 23.44% 3.62% 1.56%
Return on equity 2.34% (84.82%) 0.00%
Return on assets 0.97% (22.72%) 0.00%
Return on invested capital 2.89% (26.79%) 0.00%

Growth

Metric RSVR STRZ Entertainment median
Revenue growth (TTM) 11.41% (6.20%) 5.07%
EPS growth (last fiscal year) 8.33% 0.00% —
Revenue growth, 5-year CAGR 10.25% — 10.25%
Net income growth, 5-year CAGR (6.94%) 0.00% 0.00%

Health

Metric RSVR STRZ Entertainment median
Debt to equity 1.22 2.10 0.46
Current ratio 1.31 0.25 0.86
Net debt to EBITDA 6.08 (6,827.83) 0.72

Dividend

Metric RSVR STRZ Entertainment median
Dividend yield — — 1.16%
Payout ratio 0.00 — 0.00

Size

Metric RSVR STRZ Entertainment median
Market cap 625.68m 388.89m 1.87b

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