Cinemark vs Netflix Which Should You Buy?

Cinemark and Netflix are two leading companies in the entertainment industry, each offering unique opportunities for investors. Cinemark operates a chain of movie theaters worldwide, while Netflix is a popular streaming service with a vast library of movies and TV shows. Both companies have seen significant growth in recent years, but with the rise of streaming platforms like Netflix, traditional movie theaters like Cinemark have faced challenges. Investors must weigh the potential risks and rewards of investing in these two contrasting yet interconnected stocks.

Cinemark or Netflix?

When comparing Cinemark and Netflix, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Cinemark and Netflix.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Cinemark has a dividend yield of -%, while Netflix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cinemark reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Netflix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Cinemark P/E ratio at 16.03 and Netflix's P/E ratio at 50.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cinemark P/B ratio is 6.91 while Netflix's P/B ratio is 17.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cinemark has seen a 5-year revenue growth of -0.07%, while Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cinemark's ROE at 61.70% and Netflix's ROE at 35.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.14 for Cinemark and $909.62 for Netflix. Over the past year, Cinemark's prices ranged from $13.19 to $36.28, with a yearly change of 175.06%. Netflix's prices fluctuated between $461.86 and $941.75, with a yearly change of 103.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.