Comparing CuriosityStream (NASDAQ:CURI) & Lionsgate Studios (NYSE:LION)

Lionsgate Studios (NYSE:LION) and CuriosityStream (NASDAQ:CURI) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

6.8% of CuriosityStream shares are owned by institutional investors. 31.9% of Lionsgate Studios shares are owned by insiders. Comparatively, 31.1% of CuriosityStream shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Lionsgate Studios has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, CuriosityStream has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lionsgate Studios	-0.66%	-4.45%	1.00%
CuriosityStream	0.03%	0.06%	0.03%

Earnings and Valuation

This table compares Lionsgate Studios and CuriosityStream”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lionsgate Studios	$2.63 billion	1.61	-$198.30 million	($0.42)	-33.86
CuriosityStream	$71.66 million	2.08	-$6.43 million	$0.01	251.00

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

Analyst Recommendations

This is a breakdown of current ratings for Lionsgate Studios and CuriosityStream, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lionsgate Studios	2	2	8	0	2.50
CuriosityStream	0	2	1	1	2.75

Lionsgate Studios currently has a consensus target price of $15.16, suggesting a potential upside of 6.61%. CuriosityStream has a consensus target price of $5.00, suggesting a potential upside of 99.20%. Given CuriosityStream’s stronger consensus rating and higher probable upside, analysts clearly believe CuriosityStream is more favorable than Lionsgate Studios.

Summary

CuriosityStream beats Lionsgate Studios on 11 of the 15 factors compared between the two stocks.

About Lionsgate Studios

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 CuriosityStream

CuriosityStream Inc. operates as a factual content streaming service and media company. The company provides premium video and audio programming services in various categories of factual entertainment, including science, history, society, nature, lifestyle, and technology through direct subscription video on-demand (SVoD) platforms accessible by internet connected devices, or indirectly via distribution partners who deliver CuriosityStream content via distributor's platform or system, as well as through bundled content licenses for SVoD and linear offerings, talks and courses, and partner bulk sales. It offers streaming content through devices, including televisions, set-top boxes, computers, streaming media players, game consoles, and mobile devices. The company was founded in 2015 and is based in Silver Spring, Maryland.