Head to Head Survey: iQIYI (NASDAQ:IQ) and Lionsgate Studios (NYSE:LION)

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

Valuation & Earnings

This table compares iQIYI and Lionsgate Studios”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iQIYI	$3.80 billion	0.23	-$29.50 million	($0.12)	-7.68
Lionsgate Studios	$2.63 billion	1.37	-$198.30 million	($0.42)	-28.93

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

Volatility & Risk

iQIYI has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Lionsgate Studios has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for iQIYI and Lionsgate Studios, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iQIYI	1	4	1	0	2.00
Lionsgate Studios	2	2	8	0	2.50

iQIYI presently has a consensus price target of $1.73, suggesting a potential upside of 87.80%. Lionsgate Studios has a consensus price target of $15.16, suggesting a potential upside of 24.77%. Given iQIYI’s higher probable upside, equities research analysts plainly believe iQIYI is more favorable than Lionsgate Studios.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iQIYI	-3.24%	-6.29%	-1.78%
Lionsgate Studios	-4.10%	N/A	-0.44%

Insider and Institutional Ownership

52.7% of iQIYI shares are held by institutional investors. 57.8% of iQIYI shares are held by company insiders. Comparatively, 31.9% of Lionsgate Studios shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

iQIYI beats Lionsgate Studios on 8 of the 14 factors compared between the two stocks.

About iQIYI

iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.

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.