Analyzing DouYu International (NASDAQ:DOYU) and IMAX (NYSE:IMAX)

IMAX (NYSE:IMAX) and DouYu International (NASDAQ:DOYU) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Profitability

This table compares IMAX and DouYu International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IMAX	9.84%	15.47%	7.49%
DouYu International	-0.94%	2.66%	1.69%

Volatility and Risk

IMAX has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for IMAX and DouYu International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IMAX	0	3	10	0	2.77
DouYu International	1	1	0	0	1.50

IMAX currently has a consensus target price of $54.45, indicating a potential upside of 1.74%. DouYu International has a consensus target price of $5.00, indicating a potential upside of 6.61%. Given DouYu International’s higher possible upside, analysts clearly believe DouYu International is more favorable than IMAX.

Insider and Institutional Ownership

93.5% of IMAX shares are held by institutional investors. Comparatively, 17.9% of DouYu International shares are held by institutional investors. 20.6% of IMAX shares are held by company insiders. Comparatively, 17.3% of DouYu International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares IMAX and DouYu International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IMAX	$410.21 million	7.16	$34.88 million	$0.72	74.34
DouYu International	$546.09 million	0.26	-$4.16 million	($0.16)	-29.31

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

Summary

IMAX beats DouYu International on 11 of the 14 factors compared between the two stocks.

About IMAX

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies. It also offers preventative and emergency maintenance services and quality monitoring to the IMAX network; film post-production services; and IMAX film and digital cameras to content creators. In addition, the company engages in the distribution of large-format documentary films to institutional theaters, as well as live performances and interactive events with artists and creators; after-market sales of IMAX System parts and 3D glasses; sale or lease of IMAX theater systems; provision of management services to three other theaters, as well as production advice and technical assistance to documentary and Hollywood filmmakers; and rental of company’s proprietary 2D and 3D large-format film cameras. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It offers its services under the IMAX, IMAX 3D, Experience It In IMAX, The IMAX Experience, DMR, Filmed For IMAXTM, IMAX Live, IMAX Enhanced, and SSIMWAVE. The company operates a network of IMAX systems comprising commercial multiplexes, commercial destinations, and institutional locations in 90 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.