Star Fashion Culture (NASDAQ:STFS – Get Free Report) and National CineMedia (NASDAQ:NCMI – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Risk and Volatility
Star Fashion Culture has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, National CineMedia has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.
Institutional and Insider Ownership
69.5% of National CineMedia shares are owned by institutional investors. 1.4% of National CineMedia shares are owned 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star Fashion Culture | 1 | 0 | 0 | 0 | 1.00 |
| National CineMedia | 1 | 3 | 3 | 0 | 2.29 |
National CineMedia has a consensus target price of $5.80, indicating a potential upside of 72.16%. Given National CineMedia’s stronger consensus rating and higher probable upside, analysts clearly believe National CineMedia is more favorable than Star Fashion Culture.
Profitability
This table compares Star Fashion Culture and National CineMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star Fashion Culture | N/A | N/A | N/A |
| National CineMedia | -6.39% | -2.67% | -1.99% |
Earnings and Valuation
This table compares Star Fashion Culture and National CineMedia”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star Fashion Culture | $120.79 million | 0.01 | -$18.26 million | N/A | N/A |
| National CineMedia | $236.30 million | 1.34 | -$22.30 million | ($0.15) | -22.46 |
Star Fashion Culture has higher earnings, but lower revenue than National CineMedia.
Summary
National CineMedia beats Star Fashion Culture on 8 of the 12 factors compared between the two stocks.
About Star Fashion Culture
Star Fashion Culture Holdings Limited provides content marketing solutions services in the People’s Republic of China. It offers marketing campaign planning and execution services; offline advertising services; and online precision marketing services. The company was founded in 2015 and is based in Xiamen, the People’s Republic of China. Star Fashion Culture Holdings Limited operates as a subsidiary of Xingji ZhangPingting Limited.
About National CineMedia
National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.
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