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LGF.A vs. IMAX: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Film and Television Production and Distribution sector might want to consider either Lions Gate Entertainment (LGF.A - Free Report) or Imax (IMAX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lions Gate Entertainment and Imax are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that LGF.A likely has seen a stronger improvement to its earnings outlook than IMAX has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LGF.A currently has a forward P/E ratio of 9.03, while IMAX has a forward P/E of 18.06. We also note that LGF.A has a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IMAX currently has a PEG ratio of 1.03.
Another notable valuation metric for LGF.A is its P/B ratio of 0.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IMAX has a P/B of 2.09.
Based on these metrics and many more, LGF.A holds a Value grade of A, while IMAX has a Value grade of C.
LGF.A stands above IMAX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LGF.A is the superior value option right now.
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LGF.A vs. IMAX: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Film and Television Production and Distribution sector might want to consider either Lions Gate Entertainment (LGF.A - Free Report) or Imax (IMAX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lions Gate Entertainment and Imax are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that LGF.A likely has seen a stronger improvement to its earnings outlook than IMAX has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LGF.A currently has a forward P/E ratio of 9.03, while IMAX has a forward P/E of 18.06. We also note that LGF.A has a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IMAX currently has a PEG ratio of 1.03.
Another notable valuation metric for LGF.A is its P/B ratio of 0.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IMAX has a P/B of 2.09.
Based on these metrics and many more, LGF.A holds a Value grade of A, while IMAX has a Value grade of C.
LGF.A stands above IMAX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LGF.A is the superior value option right now.