Financial Survey: National CineMedia (NASDAQ:NCMI) versus Innovid (NYSE:CTV)

Innovid (NYSE:CTV) and National CineMedia (NASDAQ:NCMI) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Innovid and National CineMedia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovid	$149.54 million	1.81	-$31.91 million	($0.21)	-8.90
National CineMedia	$207.60 million	3.28	$705.20 million	$34.07	0.21

National CineMedia has higher revenue and earnings than Innovid. Innovid is trading at a lower price-to-earnings ratio than National CineMedia, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Innovid and National CineMedia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovid	0	1	2	0	2.67
National CineMedia	0	1	3	0	2.75

Innovid currently has a consensus price target of $2.83, indicating a potential upside of 51.52%. National CineMedia has a consensus price target of $7.50, indicating a potential upside of 6.23%. Given Innovid’s higher possible upside, research analysts plainly believe Innovid is more favorable than National CineMedia.

Volatility & Risk

Innovid has a beta of 3.11, suggesting that its stock price is 211% more volatile than the S&P 500. Comparatively, National CineMedia has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500.

Institutional & Insider Ownership

25.5% of Innovid shares are owned by institutional investors. Comparatively, 69.5% of National CineMedia shares are owned by institutional investors. 9.9% of Innovid shares are owned by insiders. Comparatively, 0.3% of National CineMedia shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Innovid and National CineMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovid	-14.15%	-10.97%	-8.71%
National CineMedia	78.04%	3.50%	2.63%

Summary

National CineMedia beats Innovid on 11 of the 14 factors compared between the two stocks.

About Innovid

Innovid Corp. operates an independent software platform that provides ad serving, measurement, and creative services. It offers advertising services for the creation, delivery, and measurement of TV ads across connected TV, mobile TV, and desktop TV environments to advertisers, publishers, and media agencies. The company serves consumer packaged goods, pharmaceutical and healthcare, retail, financial services, and automotive and technology industries; third party agencies; and publishers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Innovid Corp. was incorporated in 2007 and is headquartered in New York, New York.

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.