IMAX vs Carnival Which Should You Buy?

IMAX and Carnival Corporation are two leading companies in the entertainment industry, but they cater to very different markets. IMAX is known for its immersive and technologically advanced movie-going experience, while Carnival is the world's largest cruise line operator. Both companies have experienced success and challenges in recent years, with IMAX benefitting from the resurgence of the movie industry and Carnival facing setbacks due to the global pandemic. Investors must consider the unique dynamics of each company when deciding where to allocate their funds.

IMAX or Carnival?

When comparing IMAX and Carnival, 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 IMAX and Carnival.

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. IMAX has a dividend yield of -%, while Carnival has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IMAX reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Carnival 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 IMAX P/E ratio at 58.87 and Carnival's P/E ratio at 19.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IMAX P/B ratio is 4.74 while Carnival's P/B ratio is 3.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IMAX has seen a 5-year revenue growth of 0.16%, while Carnival's is -0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IMAX's ROE at 8.56% and Carnival's ROE at 27.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $25.57 for IMAX and €22.46 for Carnival. Over the past year, IMAX's prices ranged from $13.20 to $26.84, with a yearly change of 103.33%. Carnival's prices fluctuated between €11.28 and €23.50, with a yearly change of 108.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.