Manchester United (NYSE:MANU) & Cineplex (OTCMKTS:CPXGF) Financial Analysis

Manchester United (NYSE:MANU) and Cineplex (OTCMKTS:CPXGF) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

23.3% of Manchester United shares are held by institutional investors. Comparatively, 42.8% of Cineplex shares are held by institutional investors. 68.6% of Manchester United shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Manchester United and Cineplex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manchester United	0	1	0	0	2.00
Cineplex	0	0	0	0	N/A

Manchester United currently has a consensus price target of $18.50, indicating a potential upside of 14.34%. Cineplex has a consensus price target of $9.00, indicating a potential upside of 13.64%. Given Manchester United’s higher probable upside, equities analysts plainly believe Manchester United is more favorable than Cineplex.

Valuation & Earnings

This table compares Manchester United and Cineplex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manchester United	$833.39 million	3.20	-$142.51 million	($0.62)	-26.10
Cineplex	N/A	N/A	N/A	$1.02	7.80

Cineplex has lower revenue, but higher earnings than Manchester United. Manchester United is trading at a lower price-to-earnings ratio than Cineplex, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Manchester United and Cineplex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manchester United	-17.28%	-55.05%	-3.97%
Cineplex	N/A	N/A	N/A

Summary

Cineplex beats Manchester United on 6 of the 9 factors compared between the two stocks.

About Manchester United

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.

About Cineplex

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Location-Based Entertainment. The company engages in theatre exhibitions and food service activities; and provision of alternative programming service comprising international film programming, as well as content offered under the Event Cinema brand, including The Metropolitan Opera, sporting events, concerts, and dedicated event screens. The company also operates cineplex.com, a website that offers streaming video, movie information, showtimes and ability to buy tickets online, entertainment news, and box office reports, as well as advertising and digital commerce solutions; Cineplex mobile app; and the Cineplex Store, which provides transactional video-on-demand, including Home Premiere services, such as premium video on demand and premium electronic sell through services. In addition, it incorporates advertising mediums related to theatre exhibition; and offers digital signage solutions and in-store retail media networks for various brands in shopping centers, restaurants, retailers, and entertainment destinations. Further, the company operates location-based entertainment establishments, including The Rec Room, a social entertainment destination for millennials that offers a range of entertainment options, such as simulation, redemption, video, recreational gaming, attractions, and a live entertainment venue for watching entertainment programming; Playdium, a complex designed for teens and families; and Cineplex Junxion, an entertainment concept for movies, amusement gaming, dining, and live performances, as well as in-theatre gaming centers. Additionally, it offers Scene+, a customer loyalty program designed to offer members discounts and the opportunity to earn and redeem points. Cineplex Inc. was founded in 1912 and is headquartered in Toronto, Canada.