Cedar Fair (NYSE:FUN) and Alliance MMA (NASDAQ:AMMA) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Dividends

Cedar Fair pays an annual dividend of $3.70 per share and has a dividend yield of 7.2%. Alliance MMA does not pay a dividend. Cedar Fair pays out 91.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Fair has increased its dividend for 5 consecutive years.

Insider & Institutional Ownership

50.8% of Cedar Fair shares are held by institutional investors. Comparatively, 3.0% of Alliance MMA shares are held by institutional investors. 2.0% of Cedar Fair shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cedar Fair and Alliance MMA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cedar Fair $1.32 billion 2.19 $215.47 million $4.05 12.69
Alliance MMA $4.21 million 0.96 -$11.97 million N/A N/A

Cedar Fair has higher revenue and earnings than Alliance MMA.

Risk and Volatility

Cedar Fair has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Alliance MMA has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Profitability

This table compares Cedar Fair and Alliance MMA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cedar Fair 15.58% 1,656.35% 10.72%
Alliance MMA -425.29% -669.95% -381.32%

Analyst Recommendations

This is a summary of recent ratings and price targets for Cedar Fair and Alliance MMA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cedar Fair 0 2 4 0 2.67
Alliance MMA 0 0 0 0 N/A

Cedar Fair currently has a consensus target price of $63.00, suggesting a potential upside of 22.57%. Given Cedar Fair’s higher probable upside, equities analysts clearly believe Cedar Fair is more favorable than Alliance MMA.

Summary

Cedar Fair beats Alliance MMA on 13 of the 14 factors compared between the two stocks.

Cedar Fair Company Profile

Cedar Fair, L.P. owns and operates amusement and water parks, and hotels in the United States and Canada. The company operates approximately 11 amusement parks, 2 outdoor water parks, 1 indoor water park, and 4 hotels. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Canada; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Dorney Park & Wildwater Kingdom in Allentown, Pennsylvania; Kings Dominion located near Richmond, Virginia; California's Great America located in Santa Clara, California; Valleyfair located near Minneapolis/St. Paul, Minnesota; Worlds of Fun located in Kansas City, Missouri; and Michigan's Adventure located near Muskegon, Michigan. The company also manages and operates Gilroy Gardens Family Theme Park in Gilroy, California; and owns and operates the Castaway Bay Indoor Waterpark Resort in Sandusky, Ohio, as well as two gated outdoor water parks. Cedar Fair Management, Inc. serves as the general partner of Cedar Fair, L.P. The company was founded in 1983 and is based in Sandusky, Ohio.

Alliance MMA Company Profile

Alliance MMA, Inc. focuses on mixed martial arts (MMA) promotional activities. It operates through three segments: Promotions, Ticket Services, and Athlete Management. The company offers MMA promotions, MMA ticketing platform, and fighter management services. It also provides live MMA event promotion, as well as athlete management services to professional MMA fighters. The company was founded in 2015 and is based in New York, New York.

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