Reviewing Eros International (EROS) and RLJ Entertainment (RLJE)

Eros International (NYSE:EROS) and RLJ Entertainment (NASDAQ:RLJE) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Insider and Institutional Ownership

55.1% of Eros International shares are owned by institutional investors. Comparatively, 6.7% of RLJ Entertainment shares are owned by institutional investors. 94.3% of RLJ Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.



Risk & Volatility

Eros International has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, RLJ Entertainment has a beta of 3.17, meaning that its share price is 217% more volatile than the S&P 500.

Valuation and Earnings

This table compares Eros International and RLJ Entertainment’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eros International $261.25 million 2.23 -$22.57 million ($0.09) -103.78
RLJ Entertainment $86.30 million 1.13 -$6.12 million N/A N/A

RLJ Entertainment has lower revenue, but higher earnings than Eros International.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Eros International and RLJ Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eros International 0 0 2 0 3.00
RLJ Entertainment 0 0 0 0 N/A

Eros International presently has a consensus price target of $16.50, indicating a potential upside of 76.66%. Given Eros International’s higher possible upside, analysts plainly believe Eros International is more favorable than RLJ Entertainment.

Profitability

This table compares Eros International and RLJ Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eros International -13.52% 1.31% 0.92%
RLJ Entertainment -7.94% N/A -4.90%

Summary

Eros International beats RLJ Entertainment on 7 of the 11 factors compared between the two stocks.

Eros International Company Profile

Eros International Plc, together with its subsidiaries, co-produces, acquires, and distributes Indian films in various formats worldwide. The company distributes its film content through various distribution channels, including theatrical, which includes multiplex chains and stand-alone theaters; television syndication that comprises satellite television broadcasting, cable television, and terrestrial television; and digital and ancillary, such as Internet protocol television, video on demand, music, inflight entertainment, home video, and Internet channels, as well as Eros Now online entertainment service. It also distributes its film content through physical formats comprising DVDs and video compact discs (VCDs) in hotels and on airlines, as well as for use on mobile networks; and distributes and licenses content on physical media that includes Blu-ray, DVDs, and VCDs. In addition, the company distributes its film content to Internet platforms, as well as to wholesalers and retailers; and licenses content to third party distributors internationally to provide content dubbed into local languages for non-South Asian audiences. Further, it operates as a music publisher for third party owned music rights. Additionally, the company offers music content directly, as well as through third party platforms or licensing deals; and through streaming services, such as digital streaming, CDs, and publishing/master rights licensing. It has rights for approximately 3,000 films in its library. The company was founded in 1977 and is based in Secaucus, New Jersey.

RLJ Entertainment Company Profile

RLJ Entertainment, Inc., a digital channel company, controls, co-produces, and owns a library of content in British mysteries and dramas, independent feature films, and urban content in the United States, the United Kingdom, and internationally. It operates through three segments: Digital Channels, IP Licensing, and Wholesale Distribution. The Digital Channels segment distributes film and television content through its subscription-based digital channels, such as Acorn TV and UMC. The IP Licensing segment owns, produces, and licenses intellectual property rights. The Wholesale Distribution segment acquires and exploits content in various formats, including digital, television video on demand, broadcast, streaming, and DVD and Blu-ray through third-party media and retail outlets, as well as through mail-order catalog and e-commerce channels. RLJ Entertainment, Inc. is based in Silver Spring, Maryland.

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