Seven Arts Entertainment (OTCMKTS:SAPX – Get Free Report) and Lionsgate Entertainment (NYSE:LION – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
Volatility and Risk
Seven Arts Entertainment has a beta of 3.29, suggesting that its share price is 229% more volatile than the S&P 500. Comparatively, Lionsgate Entertainment has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
Institutional and Insider Ownership
34.0% of Lionsgate Entertainment shares are held by institutional investors. 27.7% of Seven Arts Entertainment shares are held by insiders. Comparatively, 9.4% of Lionsgate Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seven Arts Entertainment | $20,000.00 | 59.96 | -$110,000.00 | N/A | N/A |
| Lionsgate Entertainment | $4.02 billion | 0.49 | -$1.11 billion | ($1.24) | -5.50 |
Seven Arts Entertainment has higher earnings, but lower revenue than Lionsgate Entertainment.
Profitability
This table compares Seven Arts Entertainment and Lionsgate Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seven Arts Entertainment | N/A | N/A | N/A |
| Lionsgate Entertainment | -7.34% | -57.26% | -0.12% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Seven Arts Entertainment and Lionsgate Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seven Arts Entertainment | 0 | 0 | 0 | 0 | 0.00 |
| Lionsgate Entertainment | 0 | 3 | 0 | 1 | 2.50 |
Lionsgate Entertainment has a consensus target price of $8.50, suggesting a potential upside of 24.63%. Given Lionsgate Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Lionsgate Entertainment is more favorable than Seven Arts Entertainment.
Summary
Seven Arts Entertainment beats Lionsgate Entertainment on 7 of the 12 factors compared between the two stocks.
About Seven Arts Entertainment
Seven Arts Entertainment, Inc. operates as an independent motion picture production and distribution company. It acquires, develops, finances, produces, and licenses theatrical motion pictures for exhibition in theatrical markets worldwide. The company also provides its motion pictures in other forms of media, including home video, and pays and frees television. It owns interests in approximately 39 completed motion pictures. In addition, the company licenses distribution rights in its motion pictures; produces and distributes recorded music; and operates a film production and post-production facility in New Orleans, Louisiana. The company was formerly known as Seven Arts Pictures, Plc and changed its name to Seven Arts Entertainment, Inc. The company is based in Los Angeles, California.
About Lionsgate Entertainment
Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.
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