Marcus Corp (NYSE: MCS) and Belmond (NYSE:BEL) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

57.6% of Marcus Corp shares are held by institutional investors. Comparatively, 75.5% of Belmond shares are held by institutional investors. 33.5% of Marcus Corp shares are held by insiders. Comparatively, 87.6% of Belmond shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Marcus Corp and Belmond, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marcus Corp 0 0 4 0 3.00
Belmond 0 3 2 0 2.40

Marcus Corp currently has a consensus target price of $37.60, suggesting a potential upside of 46.02%. Belmond has a consensus target price of $14.25, suggesting a potential upside of 15.38%. Given Marcus Corp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Marcus Corp is more favorable than Belmond.

Profitability

This table compares Marcus Corp and Belmond’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marcus Corp 6.63% 10.08% 4.28%
Belmond 1.18% 3.99% 1.77%

Dividends

Marcus Corp pays an annual dividend of $0.50 per share and has a dividend yield of 1.9%. Belmond does not pay a dividend. Marcus Corp pays out 33.1% of its earnings in the form of a dividend. Belmond has raised its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Marcus Corp and Belmond’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marcus Corp $594.17 million 0.83 $125.32 million $1.51 17.05
Belmond $558.66 million 2.26 $107.25 million $0.07 176.43

Marcus Corp has higher revenue and earnings than Belmond. Marcus Corp is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Marcus Corp has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Belmond has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Summary

Marcus Corp beats Belmond on 10 of the 17 factors compared between the two stocks.

About Marcus Corp

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.

About Belmond

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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