iQIYI (NASDAQ:IQ) and IMAX (NYSE:IMAX) Head to Head Analysis

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

Volatility and Risk

IMAX has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Profitability

This table compares IMAX and iQIYI’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%
iQIYI	-3.24%	-6.29%	-1.78%

Analyst Ratings

This is a summary of current recommendations for IMAX and iQIYI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IMAX	0	3	11	0	2.79
iQIYI	1	4	1	0	2.00

IMAX presently has a consensus price target of $55.17, indicating a potential upside of 7.42%. iQIYI has a consensus price target of $1.73, indicating a potential upside of 73.35%. Given iQIYI’s higher possible upside, analysts plainly believe iQIYI is more favorable than IMAX.

Valuation and Earnings

This table compares IMAX and iQIYI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IMAX	$410.21 million	6.87	$34.88 million	$0.72	71.33
iQIYI	$3.80 billion	0.25	-$29.50 million	($0.12)	-8.32

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

Institutional and Insider Ownership

93.5% of IMAX shares are owned by institutional investors. Comparatively, 52.7% of iQIYI shares are owned by institutional investors. 20.6% of IMAX shares are owned by company insiders. Comparatively, 57.8% of iQIYI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

IMAX beats iQIYI 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 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.