Cinemark (NYSE:CNK – Get Free Report) and Sound Group (NASDAQ:SOGP – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Profitability
This table compares Cinemark and Sound Group’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% |
| Sound Group | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Cinemark and Sound Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cinemark | 0 | 6 | 9 | 0 | 2.60 |
| Sound Group | 0 | 1 | 0 | 0 | 2.00 |
Volatility and Risk
Cinemark has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Sound Group has a beta of 2.44, suggesting that its stock price is 144% more volatile than the S&P 500.
Earnings & Valuation
This table compares Cinemark and Sound Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cinemark | $3.12 billion | 1.42 | $138.20 million | $1.69 | 22.57 |
| Sound Group | $443.69 million | 0.08 | $32.39 million | ($1.51) | -7.06 |
Cinemark has higher revenue and earnings than Sound Group. Sound Group is trading at a lower price-to-earnings ratio than Cinemark, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
1.6% of Sound Group shares are held by institutional investors. 2.4% of Cinemark shares are held by company insiders. Comparatively, 25.2% of Sound Group 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
Cinemark beats Sound Group on 10 of the 13 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 Sound Group
Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.
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