Cinemark (NYSE:CNK – Get Free Report) and Netflix (NASDAQ:NFLX – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Earnings & Valuation
This table compares Cinemark and Netflix”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cinemark | $3.12 billion | 1.35 | $138.20 million | $1.69 | 21.52 |
| Netflix | $45.18 billion | 6.42 | $10.98 billion | $3.18 | 21.92 |
Institutional & Insider Ownership
80.9% of Netflix shares are owned by institutional investors. 2.4% of Cinemark shares are owned by company insiders. Comparatively, 1.2% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Cinemark and Netflix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cinemark | 6.44% | 50.94% | 4.88% |
| Netflix | 28.22% | 40.02% | 19.81% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Cinemark and Netflix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cinemark | 0 | 6 | 9 | 0 | 2.60 |
| Netflix | 1 | 15 | 35 | 4 | 2.76 |
Cinemark presently has a consensus price target of $37.93, suggesting a potential upside of 4.27%. Netflix has a consensus price target of $94.94, suggesting a potential upside of 36.21%. Given Netflix’s stronger consensus rating and higher possible upside, analysts clearly believe Netflix is more favorable than Cinemark.
Risk and Volatility
Cinemark has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.
Summary
Netflix beats Cinemark on 13 of the 15 factors compared between the two stocks.
About Cinemark
Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. As of February 16, 2024, it operated 501 theatres with 5,719 screens in 42 states and 13 countries in South and Central America. Cinemark Holdings, Inc. was founded in 1984 and is headquartered in Plano, Texas.
About Netflix
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
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