Financial Comparison: Lionsgate Entertainment (NYSE:LION) and International Media Acquisition (NASDAQ:IMAQ)

Lionsgate Entertainment (NYSE:LION) and International Media Acquisition (NASDAQ:IMAQ) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Lionsgate Entertainment and International Media Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lionsgate Entertainment	0	4	4	1	2.67
International Media Acquisition	0	0	0	0	0.00

Lionsgate Entertainment presently has a consensus price target of $8.86, indicating a potential upside of 27.99%. Given Lionsgate Entertainment’s stronger consensus rating and higher probable upside, research analysts plainly believe Lionsgate Entertainment is more favorable than International Media Acquisition.

Institutional and Insider Ownership

34.0% of Lionsgate Entertainment shares are owned by institutional investors. Comparatively, 25.9% of International Media Acquisition shares are owned by institutional investors. 9.4% of Lionsgate Entertainment shares are owned by company insiders. Comparatively, 83.7% of International Media Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Lionsgate Entertainment has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, International Media Acquisition has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Profitability

This table compares Lionsgate Entertainment and International Media Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lionsgate Entertainment	-7.34%	-57.26%	-0.12%
International Media Acquisition	N/A	N/A	-6.41%

Valuation & Earnings

This table compares Lionsgate Entertainment and International Media Acquisition”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lionsgate Entertainment	$4.02 billion	0.50	-$1.11 billion	($0.43)	-16.09
International Media Acquisition	N/A	N/A	-$810,000.00	N/A	N/A

International Media Acquisition has lower revenue, but higher earnings than Lionsgate Entertainment.

Summary

Lionsgate Entertainment beats International Media Acquisition on 8 of the 12 factors compared between the two stocks.

About Lionsgate Entertainment

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.

About International Media Acquisition

International Media Acquisition Corp. does not have significant operations. The company intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the media and entertainment sector. International Media Acquisition Corp. was incorporated in 2021 and is based in North Brunswick, New Jersey.