Carmike Cinemas (NASDAQ: CKEC) and Imax Corporation (NYSE:IMAX) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitabiliy and dividends.

Volatility & Risk

Carmike Cinemas has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Imax Corporation has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Carmike Cinemas and Imax Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carmike Cinemas 0 2 0 0 2.00
Imax Corporation 0 2 9 0 2.82

Carmike Cinemas currently has a consensus price target of $32.88, indicating a potential downside of 1.57%. Imax Corporation has a consensus price target of $38.85, indicating a potential upside of 54.17%. Given Imax Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Imax Corporation is more favorable than Carmike Cinemas.

Earnings & Valuation

This table compares Carmike Cinemas and Imax Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Carmike Cinemas N/A N/A N/A $0.23 145.22
Imax Corporation $352.59 million 4.76 $70.80 million $0.28 90.00

Imax Corporation has higher revenue and earnings than Carmike Cinemas. Imax Corporation is trading at a lower price-to-earnings ratio than Carmike Cinemas, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

87.5% of Carmike Cinemas shares are owned by institutional investors. Comparatively, 88.6% of Imax Corporation shares are owned by institutional investors. 5.6% of Carmike Cinemas shares are owned by company insiders. Comparatively, 18.9% of Imax Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Carmike Cinemas and Imax Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carmike Cinemas -1.56% -1.97% -1.44%
Imax Corporation 5.46% 2.49% 1.82%

Summary

Imax Corporation beats Carmike Cinemas on 10 of the 11 factors compared between the two stocks.

Carmike Cinemas Company Profile

Carmike Cinemas, Inc. is a motion picture exhibitor company. The Company owns and operates theatres and screens. Its theatres are equipped to provide digital cinema. It owns, operates or has an interest in approximately 280 theatres with over 2,940 screens located in over 40 states. In addition, it has approximately 260 theatres with over 1,090 screens equipped for three dimension (3-D). It operates approximately 20 theatres with over 110 screens as discount theatres. It operates approximately 50 premium large-format auditoriums, which operate under the Big D, IMAX and MuviXL names. Big D auditoriums include wall to wall screens, approximately 7.1 surround sound and digital projection for both two dimensional (2-D) and 3-D features. The Company operates a family entertainment center under the name Hollywood Connection, which features a multiplex theatre and other forms of family entertainment. The Company also operates over two Bogart’s Bar and Grill Restaurants.

Imax Corporation Company Profile

IMAX Corporation is an entertainment technology company. The Company operates through seven segments: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production, and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment provides IMAX theater projection system equipment to exhibitors. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films. The film post-production segment provides film post-production and film print services. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.

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