Redbox Entertainment (NASDAQ: RDBXGet a rating) and iQIYI (NASDAQ: IQGet a rating) are both consumer discretionary companies, but which is the better investment? We’ll compare the two companies based on institutional ownership strength, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Notes

This is a breakdown of recent valuations and price targets for Redbox Entertainment and iQIYI, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Redbox Entertainment 1 2 1 0 2.00
iQIYI 1 2 4 0 2.43

Redbox Entertainment currently has a consensus target price of 7.00, suggesting a potential drop of 5.41%. iQIYI has a consensus target price of $8.59, suggesting a potential upside of 104.42%. Given iQIYI’s stronger consensus rating and higher likely upside, analysts clearly believe iQIYI is more favorable than Redbox Entertainment.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Redbox Entertainment and iQIYI.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Redbox Entertainment $288.54 million 1.16 -$112.79 million N / A N / A
iQIYI $4.74 billion 0.71 -$968.14 million ($0.93) -4.52

Redbox Entertainment has higher earnings, but lower earnings than iQIYI.

Insider and Institutional Ownership

32.7% of iQIYI shares are held by institutional investors. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a stock is poised for long-term growth.

Volatility and risk

Redbox Entertainment has a beta of -2.96, indicating its stock price is 396% less volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.89, indicating its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity, and return on assets of Redbox Entertainment and iQIYI.

Net margins Return on equity return on assets
Redbox Entertainment N / A N / A -44.63%
iQIYI -15.85% -62.47% -9.14%

Summary

iQIYI beat Redbox Entertainment on 7 out of 11 factors compared between the two stocks.

Company Profile Redbox Entertainment (Get a rating)

Redbox Entertainment Inc. operates a network of self-service kiosks in the United States. It operates a network of approximately 38,000 self-service kiosks, where consumers can rent or purchase newly released DVDs and Blu-ray discs. The company provides installation, merchandising and troubleshooting services to other kiosk businesses. It also produces, acquires and distributes films through its film distribution label, Redbox Entertainment, LLC, providing rights to talent-directed films that are distributed on the Company’s services, as well as on third-party digital. In addition, the Company offers transactional and ad-supported digital streaming services, which include Redbox On Demand, a transactional service that offers digital rental or purchase of new release and catalog movies and television content; Redbox Free On Demand, an ad-supported service offering free on-demand movies and TV shows; and Redbox Free Live TV, an ad-supported television service providing access to approximately 100 linear channels. The company is based in Oakbrook Terrace, Illinois.

iQIYI Company Profile (Get a rating)

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People’s Republic of China. The Company offers various products and services including Internet video, online games, live streaming, online literature, animations, e-commerce and social media platform. It operates a platform that provides a collection of video content over the Internet, including professionally produced content licensed from professional content providers and self-produced content. The Company also provides membership services, content distribution and online advertising. Additionally, it operates iQIYI Show, a live streaming service that allows users to follow their favorite hosts, celebrities, and shows in real time through live streaming; and iQIYI Lite, easy and quick access to personalized videos based on their user preferences. In addition, he is involved in talent agency and IP licensing activities, as well as the development of a video community application. 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 Holdings Limited.



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