Comparing Marcus (MCS) & The Competition

Marcus (NYSE:MCS) is one of 184 public companies in the “Entertainment” industry, but how does it contrast to its competitors? We will compare Marcus to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.

Profitability

This table compares Marcus and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus	3.08%	3.84%	1.75%
Marcus Competitors	11.01%	-22.78%	-2.44%

Volatility and Risk

Marcus has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Marcus’ competitors have a beta of 1.00, indicating that their average share price is 0% less volatile than the S&P 500.

Valuation and Earnings

This table compares Marcus and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marcus	$758.46 million	$12.69 million	33.83
Marcus Competitors	$4.13 billion	$73.91 million	14.17

Marcus’ competitors have higher revenue and earnings than Marcus. Marcus is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Marcus and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus	0	2	4	0	2.67
Marcus Competitors	1877	4510	9624	255	2.51

Marcus presently has a consensus price target of $32.25, indicating a potential upside of 20.67%. As a group, “Entertainment” companies have a potential upside of 18.55%. Given Marcus’ stronger consensus rating and higher possible upside, analysts plainly believe Marcus is more favorable than its competitors.

Institutional and Insider Ownership

81.6% of Marcus shares are owned by institutional investors. Comparatively, 36.2% of shares of all “Entertainment” companies are owned by institutional investors. 16.5% of Marcus shares are owned by company insiders. Comparatively, 23.9% of shares of all “Entertainment” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Marcus pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Marcus pays out 45.6% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 16.5% and pay out 78.5% of their earnings in the form of a dividend. Marcus has increased its dividend for 2 consecutive years.

Summary

Marcus beats its competitors on 8 of the 15 factors compared.

Marcus Company Profile

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.