Cinedigm (NASDAQ:CIDM) & Redbox Entertainment (NASDAQ:RDBX) Head to Head Review

Cinedigm (NASDAQ:CIDMGet Rating) and Redbox Entertainment (NASDAQ:RDBXGet Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares Cinedigm and Redbox Entertainment’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cinedigm $31.42 million 3.06 -$62.82 million $0.03 18.32
Redbox Entertainment $288.54 million 1.85 -$112.79 million N/A N/A

Cinedigm has higher earnings, but lower revenue than Redbox Entertainment.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cinedigm and Redbox Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cinedigm 0 0 1 0 3.00
Redbox Entertainment 1 2 1 0 2.00

Cinedigm currently has a consensus target price of $3.25, indicating a potential upside of 537.25%. Redbox Entertainment has a consensus target price of 7.00, indicating a potential downside of 38.65%. Given Cinedigm’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cinedigm is more favorable than Redbox Entertainment.

Profitability

This table compares Cinedigm and Redbox Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cinedigm -4.55% -3.16% -0.88%
Redbox Entertainment N/A N/A -59.93%

Insider and Institutional Ownership

18.4% of Cinedigm shares are held by institutional investors. 15.8% of Cinedigm shares are held by insiders. 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

Cinedigm has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Redbox Entertainment has a beta of -2.96, meaning that its share price is 396% less volatile than the S&P 500.

Summary

Cinedigm beats Redbox Entertainment on 8 of the 11 factors compared between the two stocks.

Cinedigm Company Profile (Get Rating)

Cinedigm Corp., together with its subsidiaries, operates as distributor and aggregator of independent movie, television, and other short form content in the United States, Canada, and New Zealand. The company operates through two segments, Cinema Equipment Business and Media Content and Entertainment Business. The company distributes its products for various brands, such as Hallmark, Televisa, ITV, Nelvana, ZDF, Konami, NFL, and NHL, as well as international and domestic content creators, movie producers, television producers, and other short form digital content producers. It also collaborates with producers, various brands, and other content owners to market, source, curate, and distribute content to targeted audiences through existing and emerging digital home entertainment platforms, including Apple, Amazon Prime, Netflix, Hulu, Xbox, Tubi, PlutoTV, Vudu, and cable/satellite video-on-demand; and distributes DVD and Blu-ray discs to wholesalers and retailers with sales coverage to approximately 48,000 retail storefronts, including Walmart, Target, Best Buy, and Amazon. In addition, the company operates various branded and curated over-the-top (OTT) entertainment channels, including Docurama, CONtv, Dove Channel, Viewster Anime, Fandor, and Screambox; and Matchpoint, a software-as-a-service platform to automate the distribution of streaming content and OTT channels. Cinedigm Corp. has a strategic alliance with Starrise Media Holdings Limited to release films in China theatrically and to digital platforms. The company was formerly known as Cinedigm Digital Cinema Corp. and changed its name to Cinedigm Corp. in September 2013. Cinedigm Corp. was incorporated in 2000 and is headquartered in New York, New York.

Redbox Entertainment Company Profile (Get Rating)

Redbox Entertainment Inc. operates a network of self-service kiosks in the United States. It operates a network of approximately 38,000 self-service kiosks, where consumers could rent or purchase new-release DVDs and Blu-ray Discs. The company provides installation, merchandising, and break-fix services to other kiosk businesses. It also produces, acquires, and distributes movies through its film distribution label, Redbox Entertainment, LLC, providing rights to talent-led films that are distributed across the company's services, as well as through third party digital services. In addition, the company offers transactional and ad-supported digital streaming services, which include Redbox On Demand, a transactional service that provides digital rental or purchase of new release and catalog movies and TV content; Redbox Free On Demand, an ad-supported service providing free movies and TV shows on demand; and Redbox Free Live TV, an ad-supported television service giving access to approximately 100 linear channels. The company is based in Oakbrook Terrace, Illinois.

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