Critical Comparison: Marcus (MCS) & Its Competitors

Marcus (NYSE:MCS) is one of 185 public companies in the “Entertainment” industry, but how does it contrast to its competitors? We will compare Marcus to related businesses based on the strength of its institutional ownership, dividends, valuation, earnings, profitability, analyst recommendations and risk.

Profitability

This table compares Marcus and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus	3.08%	3.84%	1.75%
Marcus Competitors	9.83%	-32.30%	-2.88%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Marcus and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus	0	2	4	0	2.67
Marcus Competitors	1898	4561	9689	257	2.51

Marcus presently has a consensus price target of $32.25, suggesting a potential upside of 18.25%. As a group, “Entertainment” companies have a potential upside of 14.61%. Given Marcus’ stronger consensus rating and higher possible upside, research analysts plainly believe Marcus is more favorable than its competitors.

Insider & Institutional Ownership

81.6% of Marcus shares are held by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are held by institutional investors. 16.5% of Marcus shares are held by company insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Marcus and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marcus	$758.46 million	$12.69 million	34.52
Marcus Competitors	$4.05 billion	$67.95 million	2.62

Marcus’ competitors have higher revenue and earnings than Marcus. Marcus is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Marcus pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Marcus pays out 45.6% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 15.9% and pay out 78.6% of their earnings in the form of a dividend. Marcus has increased its dividend for 2 consecutive years.

Volatility & Risk

Marcus has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Marcus’ competitors have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.

Summary

Marcus beats its competitors on 8 of the 15 factors compared.

Marcus Company Profile

Marcus Corporation is a Milwaukee-based entertainment and hospitality company founded in 1935. It operates through Marcus Theatres, which runs movie theaters in the United States, and Marcus Hotels & Resorts, which owns and manages hotels and resorts. Marcus Theatres offers movie screenings and related guest experiences, while Marcus Hotels & Resorts provides lodging, dining, meeting and event services. The company’s operations are concentrated in the United States, particularly the Midwest.