IMAX (NYSE: IMAX) and Ricoh (OTCMKTS:RICOY) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Risk & Volatility
IMAX has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Ricoh has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.
83.7% of IMAX shares are held by institutional investors. Comparatively, 0.0% of Ricoh shares are held by institutional investors. 18.9% of IMAX shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares IMAX and Ricoh’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IMAX||$380.77 million||3.85||$2.34 million||$0.18||126.94|
|Ricoh||$18.77 billion||0.36||$31.74 million||$0.04||233.75|
Ricoh has higher revenue and earnings than IMAX. IMAX is trading at a lower price-to-earnings ratio than Ricoh, indicating that it is currently the more affordable of the two stocks.
Ricoh pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. IMAX does not pay a dividend. Ricoh pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares IMAX and Ricoh’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for IMAX and Ricoh, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IMAX presently has a consensus target price of $27.65, suggesting a potential upside of 21.01%. Given IMAX’s higher probable upside, equities analysts clearly believe IMAX is more favorable than Ricoh.
IMAX beats Ricoh on 11 of the 15 factors compared between the two stocks.
IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company that specializes in motion picture technologies and presentations worldwide. It offers cinematic solution comprising proprietary software, theater architecture, and equipment. The company engages in Digital Re-Mastering (DMR) of films into the IMAX format for exhibition in the IMAX theater network; the provision of IMAX premium theater systems to exhibitor customers through sales, long-term leases, or joint revenue sharing arrangements; the distribution of documentary films; the provision of production technical support and film post-production services; the ownership and operation of IMAX theaters; and the provision of camera and other miscellaneous items rental services. It also designs, manufactures, installs, sells, or leases IMAX theater projection system equipment; maintains IMAX theater projection system equipment in the IMAX theater network; distributes and licenses original content investment, VR, IMAX home entertainment, and others; and sells or leases its theater systems to theme parks, private home theaters, tourist destination sites, fairs, and expositions, as well as engages in the after-market sale of projection system parts and 3D glasses. The company markets its theater systems through a direct sales force and marketing staff. It owns or otherwise has rights to trademarks and trade names, which include IMAX, IMAX Dome, IMAX 3D, IMAX 3D Dome, Experience It in IMAX, The IMAX Experience, An IMAX Experience, An IMAX 3DExperience, IMAX DMR, DMR, IMAX nXos, IMAX think big, think big, and IMAX Is Believing, as well as the service mark IMAX THEATRETM. As of December 31, 2017, the company's IMAX theater network cover 1,370 theater systems comprising 1,272 commercial multiplex, 12 commercial destinations, and 86 institutional customers. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.
Ricoh Company, Ltd. engages in imaging and solutions, industrial products, and other businesses worldwide. The company offers various office printing products, including multifunction printers, laser printers, digital duplicators, and facsimiles; commercial printing products, such as production and wide format printers; and visual communication products comprising unified communication systems, projectors, and interactive whiteboards, as well as extensions/services for various printers. It also provides a range of industrial products, including electronic devices, thermal media, manufacturing equipment, embedded motherboards and controllers, fonts, FA cameras and lenses, optical devices and units, security lenses, industrial inkjets, and digital binoculars; and consumer products, such as digital and spherical cameras, and watches. In addition, the company offers copiers, scanners, related parts and supplies, personal computers, servers, network equipment, semiconductor devices, and electronic components; managed printing, IT, application/business process, and communication services; and solutions to healthcare, higher education, and financial services industries, as well as applications for smart devices. The company was formerly known as Riken Optical Co., Ltd. and changed its name to Ricoh Company, Ltd. in 1963. Ricoh Company, Ltd. was founded in 1936 and is headquartered in Tokyo, Japan.
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