Head-To-Head Comparison: Discovery (DISCB) and Lionsgate (LGF.B)

Discovery (NASDAQ: DISCB) and Lionsgate (NYSE:LGF.B) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Analyst Recommendations

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This is a breakdown of current recommendations and price targets for Discovery and Lionsgate, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery 0 0 0 0 N/A
Lionsgate 0 2 4 0 2.67

Lionsgate has a consensus price target of $32.50, suggesting a potential upside of 23.86%. Given Lionsgate’s higher possible upside, analysts clearly believe Lionsgate is more favorable than Discovery.

Profitability

This table compares Discovery and Lionsgate’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Discovery -4.90% 21.68% 5.92%
Lionsgate 10.22% 9.59% 2.85%

Dividends

Lionsgate pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Discovery does not pay a dividend.

Valuation & Earnings

This table compares Discovery and Lionsgate’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Discovery $6.87 billion 1.92 -$337.00 million N/A N/A
Lionsgate $3.20 billion 1.06 $14.80 million N/A N/A

Lionsgate has lower revenue, but higher earnings than Discovery.

Institutional & Insider Ownership

0.0% of Discovery shares are owned by institutional investors. Comparatively, 83.5% of Lionsgate shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Discovery has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Lionsgate has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Summary

Lionsgate beats Discovery on 8 of the 12 factors compared between the two stocks.

Discovery Company Profile

Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company’s portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.

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