Comparing Manchester United (NYSE:MANU) and Cineplex (OTCMKTS:CPXGF)

Cineplex (OTCMKTS:CPXGF) and Manchester United (NYSE:MANU) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Cineplex and Manchester United’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cineplex	N/A	N/A	N/A
Manchester United	-17.28%	-55.05%	-3.97%

Analyst Ratings

This is a breakdown of current ratings and target prices for Cineplex and Manchester United, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cineplex	0	0	0	0	N/A
Manchester United	0	1	0	0	2.00

Manchester United has a consensus price target of $18.50, suggesting a potential upside of 12.19%. Given Manchester United’s higher probable upside, analysts clearly believe Manchester United is more favorable than Cineplex.

Insider and Institutional Ownership

42.8% of Cineplex shares are owned by institutional investors. Comparatively, 23.3% of Manchester United shares are owned by institutional investors. 68.6% of Manchester United shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Cineplex and Manchester United”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cineplex	N/A	N/A	N/A	$1.02	7.88
Manchester United	$661.76 million	4.11	-$142.51 million	($0.62)	-26.60

Cineplex has higher earnings, but lower revenue than Manchester United. Manchester United is trading at a lower price-to-earnings ratio than Cineplex, indicating that it is currently the more affordable of the two stocks.

Dividends

Cineplex pays an annual dividend of $1.47 per share and has a dividend yield of 18.3%. Manchester United pays an annual dividend of $0.09 per share and has a dividend yield of 0.5%. Cineplex pays out 144.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manchester United pays out -14.5% of its earnings in the form of a dividend.

Summary

Cineplex beats Manchester United on 7 of the 11 factors compared between the two stocks.

About Cineplex

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Location-Based Entertainment. The company engages in theatre exhibitions and food service activities; and provision of alternative programming service comprising international film programming, as well as content offered under the Event Cinema brand, including The Metropolitan Opera, sporting events, concerts, and dedicated event screens. The company also operates cineplex.com, a website that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce solutions; Cineplex mobile app; and the Cineplex Store, which provides transactional video-on-demand, including Home Premiere services, such as premium video on demand and premium electronic sell through services. In addition, it incorporates advertising mediums related to theatre exhibition; and offers digital signage solutions and in-store retail media networks for various brands in shopping centers, restaurants, retailers, and entertainment destinations. Further, the company operates location-based entertainment establishments, including The Rec Room, a social entertainment destination for millennials that offers a range of entertainment options, such as simulation, redemption, video, recreational gaming, attractions, and a live entertainment venue for watching entertainment programming; Playdium, a complex designed for teens and families; and Cineplex Junxion, an entertainment concept for movies, amusement gaming, dining, and live performances, as well as in-theatre gaming centers. Additionally, it offers Scene+, a customer loyalty program designed to offer members discounts and the opportunity to earn and redeem points. Cineplex Inc. was founded in 1912 and is headquartered in Toronto, Canada.

About Manchester United

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.