VaporBrands International (OTCMKTS:VAPR) & National CineMedia (NASDAQ:NCMI) Critical Analysis

VaporBrands International (OTCMKTS:VAPR) and National CineMedia (NASDAQ:NCMI) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares VaporBrands International and National CineMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VaporBrands International	N/A	N/A	N/A
National CineMedia	-8.62%	-3.51%	-2.58%

Volatility & Risk

VaporBrands International has a beta of 4.25, indicating that its stock price is 325% more volatile than the S&P 500. Comparatively, National CineMedia has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for VaporBrands International and National CineMedia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VaporBrands International	0	0	0	0	0.00
National CineMedia	0	3	3	0	2.50

National CineMedia has a consensus target price of $6.90, suggesting a potential upside of 54.71%. Given National CineMedia’s stronger consensus rating and higher probable upside, analysts clearly believe National CineMedia is more favorable than VaporBrands International.

Institutional and Insider Ownership

69.5% of National CineMedia shares are held by institutional investors. 49.1% of VaporBrands International shares are held by insiders. Comparatively, 0.3% of National CineMedia shares are held by 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.

Valuation & Earnings

This table compares VaporBrands International and National CineMedia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VaporBrands International	$90,000.00	66.96	-$1.02 million	N/A	N/A
National CineMedia	$240.80 million	1.74	-$22.30 million	($0.21)	-21.24

VaporBrands International has higher earnings, but lower revenue than National CineMedia.

Summary

VaporBrands International beats National CineMedia on 7 of the 12 factors compared between the two stocks.

About VaporBrands International

VaporBrands International Inc. operates as a distributor of specialty CBD oil products. The company is based in Spring Hill, Florida.

About National CineMedia

National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.