Reviewing Marcus (MCS) & 7 DAYS GROUP (SVN)

Marcus (NYSE: MCS) and 7 DAYS GROUP (NYSE:SVN) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Dividends

Marcus pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. 7 DAYS GROUP does not pay a dividend. Marcus pays out 36.0% of its earnings in the form of a dividend. 7 DAYS GROUP has raised its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Marcus and 7 DAYS GROUP’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marcus $543.86 million 1.49 $37.90 million $1.39 20.90
7 DAYS GROUP N/A N/A N/A $0.53 N/A

Marcus has higher revenue and earnings than 7 DAYS GROUP. 7 DAYS GROUP is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Marcus and 7 DAYS GROUP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marcus 6.51% 9.73% 4.15%
7 DAYS GROUP N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Marcus and 7 DAYS GROUP, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marcus 0 0 3 0 3.00
7 DAYS GROUP 0 0 0 0 N/A

Marcus currently has a consensus price target of $35.67, indicating a potential upside of 22.78%.

Institutional and Insider Ownership

60.2% of Marcus shares are held by institutional investors. 33.5% of Marcus shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Marcus beats 7 DAYS GROUP on 9 of the 11 factors compared between the two stocks.

Marcus Company Profile

The Marcus Corporation operates principally in two business segments: Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Ohio, Minnesota, Iowa, North Dakota and Nebraska, and a family entertainment center in Wisconsin. The Hotels and Resorts segment owns and operates hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska, and manages hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, Georgia, Florida and California. As of December 31, 2015, the Company owned or operated 53 movie theatre locations with a total of 668 screens in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. Its owned and operated hotels and resorts include The Pfister Hotel, The Hilton Milwaukee City Center, Hilton Madison at Monona Terrace, The Grand Geneva Resort & Spa, InterContinental Milwaukee, Skirvin Hilton, AC Hotel Chicago Downtown and The Lincoln Marriott Cornhusker Hotel.

7 DAYS GROUP Company Profile

7 Days Group Holdings Limited (7 Days Inn) is an offshore holding company structure and conducts its operations in the People’s Republic of China through its wholly owned subsidiary, 7 Days Inn (Shenzhen) Co., Ltd. (7 Days Shenzhen), and its subsidiaries and branches. The Company converts and operates limited service economy hotels across metropolitan areas in the People’s Republic of China. It offers accommodations and services. As of December 31, 2010, it had 568 hotels in operation, 247 of which were managed hotels, with 56,410 hotel rooms in 89 cities, and an additional 197 hotels with 19,345 hotel rooms under conversion. As of December 31, 2010, approximately 16.5 million members were registered with its 7 Days Club. In December 2011, the Company acquired Hunan Huatian Star Hotel Management Limited.

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