Head to Head Survey: Reservoir Media (NASDAQ:RSVR) versus Lionsgate Studios (NYSE:LION)

Reservoir Media (NASDAQ:RSVR) and Lionsgate Studios (NYSE:LION) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

44.4% of Reservoir Media shares are owned by institutional investors. 27.0% of Reservoir Media shares are owned by company insiders. Comparatively, 9.4% of Lionsgate Studios shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Reservoir Media and Lionsgate Studios”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reservoir Media	$161.55 million	3.04	$7.75 million	$0.11	68.18
Lionsgate Studios	$3.20 billion	0.58	-$125.30 million	($0.67)	-9.58

Reservoir Media has higher earnings, but lower revenue than Lionsgate Studios. Lionsgate Studios is trading at a lower price-to-earnings ratio than Reservoir Media, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Reservoir Media and Lionsgate Studios’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reservoir Media	4.67%	2.07%	0.90%
Lionsgate Studios	-6.19%	N/A	-1.86%

Analyst Ratings

This is a summary of recent ratings and price targets for Reservoir Media and Lionsgate Studios, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reservoir Media	0	2	1	0	2.33
Lionsgate Studios	1	5	7	2	2.67

Reservoir Media presently has a consensus target price of $11.50, suggesting a potential upside of 53.33%. Lionsgate Studios has a consensus target price of $8.75, suggesting a potential upside of 36.29%. Given Reservoir Media’s higher possible upside, equities analysts clearly believe Reservoir Media is more favorable than Lionsgate Studios.

Volatility and Risk

Reservoir Media has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Lionsgate Studios has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500.

Summary

Reservoir Media beats Lionsgate Studios on 11 of the 15 factors compared between the two stocks.

About Reservoir Media

Reservoir Media, Inc. operates as a music publishing company. It operates through two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York.

About Lionsgate Studios

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.