Comparing iHuman (NYSE:IH) and IMAX (NYSE:IMAX)

iHuman (NYSE:IH) and IMAX (NYSE:IMAX) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares iHuman and IMAX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iHuman	3.06%	2.44%	1.73%
IMAX	9.84%	15.47%	7.49%

Insider and Institutional Ownership

4.9% of iHuman shares are held by institutional investors. Comparatively, 93.5% of IMAX shares are held by institutional investors. 63.6% of iHuman shares are held by company insiders. Comparatively, 20.6% of IMAX shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares iHuman and IMAX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iHuman	$115.40 million	0.51	$13.64 million	$0.06	19.07
IMAX	$410.21 million	6.87	$34.88 million	$0.72	71.35

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

Volatility & Risk

iHuman has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, IMAX has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for iHuman and IMAX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iHuman	1	0	0	0	1.00
IMAX	0	3	11	0	2.79

IMAX has a consensus target price of $55.92, indicating a potential upside of 8.85%. Given IMAX’s stronger consensus rating and higher possible upside, analysts plainly believe IMAX is more favorable than iHuman.

Summary

IMAX beats iHuman on 13 of the 14 factors compared between the two stocks.

About iHuman

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People’s Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, iHuman Writing, iHuman Fantastic Friends, and iHuman Readers; bekids Coding, bekids Coloring, bekids Reading, bekids Puzzle, bekids Academy, and Gogo Town; and Aha World, an open-ended interactive app that nurtures a desire for discovery. It provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children’s abilities in speaking, critical thinking, independent reading, and creativity. iHuman Inc. was founded in 1996 and is based in Beijing, the People’s Republic of China.

About IMAX

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies. It also offers preventative and emergency maintenance services and quality monitoring to the IMAX network; film post-production services; and IMAX film and digital cameras to content creators. In addition, the company engages in the distribution of large-format documentary films to institutional theaters, as well as live performances and interactive events with artists and creators; after-market sales of IMAX System parts and 3D glasses; sale or lease of IMAX theater systems; provision of management services to three other theaters, as well as production advice and technical assistance to documentary and Hollywood filmmakers; and rental of company’s proprietary 2D and 3D large-format film cameras. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It offers its services under the IMAX, IMAX 3D, Experience It In IMAX, The IMAX Experience, DMR, Filmed For IMAXTM, IMAX Live, IMAX Enhanced, and SSIMWAVE. The company operates a network of IMAX systems comprising commercial multiplexes, commercial destinations, and institutional locations in 90 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.