Critical Contrast: Reservoir Media (NASDAQ:RSVR) & Cedar Fair (NYSE:FUN)

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

Institutional & Insider Ownership

44.4% of Reservoir Media shares are held by institutional investors. Comparatively, 64.7% of Cedar Fair shares are held by institutional investors. 27.0% of Reservoir Media shares are held by insiders. Comparatively, 1.8% of Cedar Fair shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Earnings and Valuation

This table compares Reservoir Media and Cedar Fair”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reservoir Media	$156.43 million	3.07	$640,000.00	$0.11	66.95
Cedar Fair	$2.71 billion	1.37	$124.56 million	($3.21)	-11.50

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.

Volatility and Risk

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

Analyst Ratings

This is a breakdown of recent recommendations for Reservoir Media and Cedar Fair, as reported by MarketBeat.com.

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

Reservoir Media currently has a consensus target price of $12.50, indicating a potential upside of 69.72%. Cedar Fair has a consensus target price of $55.07, indicating a potential upside of 49.13%. Given Reservoir Media’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Reservoir Media is more favorable than Cedar Fair.

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.

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.