Cedar Fair (NYSE:FUN) vs. Reservoir Media (NASDAQ:RSVR) Critical Analysis

Cedar Fair (NYSE:FUN) and Reservoir Media (NASDAQ:RSVR) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cedar Fair and Reservoir Media, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cedar Fair	1	1	12	0	2.79
Reservoir Media	0	0	1	0	3.00

Cedar Fair currently has a consensus price target of $54.57, indicating a potential upside of 45.68%. Reservoir Media has a consensus price target of $12.50, indicating a potential upside of 70.53%. Given Reservoir Media’s stronger consensus rating and higher possible upside, analysts clearly believe Reservoir Media is more favorable than Cedar Fair.

Valuation & Earnings

This table compares Cedar Fair and Reservoir Media”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cedar Fair	$2.71 billion	1.39	$124.56 million	($3.21)	-11.67
Reservoir Media	$156.43 million	3.06	$640,000.00	$0.11	66.64

Cedar Fair has higher revenue and earnings than Reservoir Media. Cedar Fair is trading at a lower price-to-earnings ratio than Reservoir Media, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cedar Fair and Reservoir Media’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cedar Fair	0.99%	113.05%	2.41%
Reservoir Media	5.04%	2.20%	1.00%

Risk & Volatility

Cedar Fair has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Reservoir Media has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

64.7% of Cedar Fair shares are owned by institutional investors. Comparatively, 44.4% of Reservoir Media shares are owned by institutional investors. 1.8% of Cedar Fair shares are owned by insiders. Comparatively, 27.0% of Reservoir Media shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

About Cedar Fair

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

About Reservoir Media

Reservoir Media, Inc. operates as a music publishing company. It operates through two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York.