Critical Analysis: Marcus Corporation (The) (MCS) versus Belmond (BEL)
Marcus Corporation (The) (NYSE: MCS) and Belmond (NYSE:BEL) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitabiliy, valuation, risk, institutional ownership and earnings.
Marcus Corporation (The) pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. Belmond does not pay a dividend. Marcus Corporation (The) pays out 33.1% of its earnings in the form of a dividend. Belmond has raised its dividend for 5 consecutive years.
Insider & Institutional Ownership
57.6% of Marcus Corporation (The) shares are held by institutional investors. Comparatively, 75.5% of Belmond shares are held by institutional investors. 33.5% of Marcus Corporation (The) shares are held by insiders. Comparatively, 87.6% of Belmond shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for Marcus Corporation (The) and Belmond, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marcus Corporation (The)||0||0||4||0||3.00|
Marcus Corporation (The) presently has a consensus price target of $37.60, indicating a potential upside of 39.00%. Belmond has a consensus price target of $14.50, indicating a potential upside of 10.69%. Given Marcus Corporation (The)’s stronger consensus rating and higher probable upside, analysts clearly believe Marcus Corporation (The) is more favorable than Belmond.
Risk & Volatility
Marcus Corporation (The) has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Belmond has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
This table compares Marcus Corporation (The) and Belmond’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marcus Corporation (The)||7.18%||10.78%||4.71%|
Earnings & Valuation
This table compares Marcus Corporation (The) and Belmond’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marcus Corporation (The)||$594.17 million||0.87||$125.26 million||$1.51||17.91|
|Belmond||$547.78 million||2.44||$102.94 million||$0.20||65.50|
Marcus Corporation (The) has higher revenue and earnings than Belmond. Marcus Corporation (The) is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.
Marcus Corporation (The) beats Belmond on 10 of the 17 factors compared between the two stocks.
About Marcus Corporation (The)
The Marcus Corporation operates principally in two business segments: Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Ohio, Minnesota, Iowa, North Dakota and Nebraska, and a family entertainment center in Wisconsin. The Hotels and Resorts segment owns and operates hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska, and manages hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, Georgia, Florida and California. As of December 31, 2015, the Company owned or operated 53 movie theatre locations with a total of 668 screens in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. Its owned and operated hotels and resorts include The Pfister Hotel, The Hilton Milwaukee City Center, Hilton Madison at Monona Terrace, The Grand Geneva Resort & Spa, InterContinental Milwaukee, Skirvin Hilton, AC Hotel Chicago Downtown and The Lincoln Marriott Cornhusker Hotel.
Belmond Ltd. (Belmond) is a hotel company and adventure travel operator. As of December 31, 2016, Belmond owned, partially-owned and/or operated 45 properties, consisting of 34 individual deluxe hotels, 29 of which are owned (including nine under long-term lease), five European tourist trains, two cruise ships in Myanmar (one of which is under long-term charter), one French canal cruise business consisting of five small canal boats, and one stand-alone restaurant in the United States. It operates through six segments: owned hotels in Europe, owned hotels in North America (including one stand-alone restaurant), owned hotels in Rest of world, owned trains and cruises, part-owned/managed hotels and part-owned/managed trains. As of December 31, 2016, Belmond’s around the world portfolio of hotels in operation consisted of 3,272 individual guest rooms and multiple-room suites (keys).
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