Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Entertainment industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Entertainment Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Entertainment Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Entertainment industry for Thursday, October 24, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Entertainment industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Blue Hat Interactive Entertainment Technology’s Value Grade

Value Grade:

Blue Hat Interactive Entertainment Technology engages in bulk commodity trading business in the People’s Republic of China. It operates through three segments: Diamond Trading, Commodity Trading, and Information Services. The company engages in the commodity trading business, such as chemicals primarily ethanol; and jewelry, which includes diamonds, gold, etc. Its distribution channels include domestic distributors, e-commerce platforms, supermarkets, and export distributors. Blue Hat Interactive Entertainment Technology was incorporated in 2010 and is based in Xiamen, China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Blue Hat Interactive Entertainment Technology has a Value Score of 69, which is considered to be undervalued.

When you look at Blue Hat Interactive Entertainment Technology’s price-to-sales ratio at 0.10 compared to the industry median at 0.95, this company has a lower price relative to revenue compared to its peers. This could make Blue Hat Interactive Entertainment Technology’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Blue Hat Interactive Entertainment Technology’s shareholder yield is lower than its industry median ratio of (0.60%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Blue Hat Interactive Entertainment Technology’s price-to-book ratio is lower than its industry median ratio of 1.13. This could make Blue Hat Interactive Entertainment Technology more attractive to investors looking for a new addition to their portfolio.

Dolphin Entertainment, Inc.’s Value Grade

Value Grade:

Dolphin Entertainment, Inc., together with its subsidiaries, operates as an independent entertainment marketing and production company in the United States. The company operates in two segments, Entertainment Publicity, and Marketing and Content Production. The Entertainment Publicity and Marketing segment provides diversified marketing services, including public relations, entertainment and hospitality content marketing, strategic communications, strategic marketing consulting, social media and influencer marketing, digital marketing, creative branding, talent publicity, and entertainment marketing services, as well as produces promotional video content. The Content Production segment produces and distributes feature films and digital content. In addition, it offers strategic marketing and publicity services to individuals and corporates in the entertainment, hospitality, and music industries; and marketing direction, public relations counsel, and media strategy for video game publishers, as well as eSports leagues and other entities in the gaming industry. The company was formerly known as Dolphin Digital Media, Inc. and changed its name to Dolphin Entertainment, Inc. in July 2017. The company was incorporated in 1995 and is headquartered in Coral Gables, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Dolphin Entertainment, Inc. has a Value Score of 65, which is considered to be undervalued.

Dolphin Entertainment, Inc.’s price-to-book ratio is higher than its peers. This could make Dolphin Entertainment, Inc. less attractive for value investors when compared to the industry median at 1.13.

You can read more about Dolphin Entertainment, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

HUYA Inc.’s Value Grade

Value Grade:

HUYA Inc., through its subsidiaries, operates game live streaming platforms in the People’s Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company’s live streaming content also covers life and other entertainment content, such as talent shows, anime, outdoor activities, live chats, and online theater. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, software development, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. operates as a subsidiary of Tencent Holdings Limited.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

HUYA Inc. has a Value Score of 99, which is considered to be undervalued.

HUYA Inc.’s price-to-book ratio is higher than its peers. This could make HUYA Inc. less attractive for value investors when compared to the industry median at 1.13.

You can read more about HUYA Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Lions Gate Entertainment Corp.’s Value Grade

Value Grade:

Lions Gate Entertainment Corp. engages in the film, television, subscription, and location-based entertainment businesses in the United States, Canada, and internationally. The company operates through three segments: Motion Picture, Television Production, and Media Networks. The Motion Picture segment engages in the development and production of feature films; acquisition of North American and worldwide distribution rights; North American theatrical, home entertainment, and television distribution of feature films produced and acquired; and worldwide licensing of distribution rights to feature films produced and acquired. The Television Production segment is involved in the development, production, and worldwide distribution of television productions, including television series, television movies and mini-series, and non-fiction programming. It also licenses Starz original series productions to Starz Networks and STARZPLAY International; distributes Starz original productions and licensed product; and sells and licenses music from television broadcasts of its productions. In addition, this segment sells and rents television production movies or series on packaged media, as well as through digital media platforms; produces, syndicates, and distributes approximately 80 television shows on approximately 35 networks; and offers services related to talent management. The Media Networks segment is involved in the domestic distribution of STARZ branded premium subscription video services through over-the-top (OTT) platforms and video programming distributors, such as cable operators, satellite television providers, and telecommunications companies; and OTT distribution of its STARZ branded premium subscription video services internationally. Lions Gate Entertainment Corp. was incorporated in 1986 and is headquartered in Santa Monica, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Lions Gate Entertainment Corp. has a Value Score of 61, which is considered to be undervalued.

You can read more about Lions Gate Entertainment Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Moving iMage Technologies, Inc.’s Value Grade

Value Grade:

Moving iMage Technologies, Inc. designs, manufactures, integrates, installs, and distributes proprietary and custom designed equipment, and other off the shelf cinema products for cinema requirements in the United States and internationally. The company provides automation, pedestal, projection pod, and power management systems; and in-house designed and assembled lighting products and dimmers, as well as distributes digital cinema projectors and servers. It also offers premium sound systems and enclosures; demand-controlled ventilation systems that automatically shuts down projector exhaust fans; and cup holders, trays, cups, advertising displays, cinema step and aisle lighting products, and other products. In addition, the company provides software solutions, such as CineQC, a cinema presence management and remote-control system. Further, it offers technical, design, and consulting services, such as custom engineering, audio visual integration, systems design and installation, and digital technology services, as well as software solutions for operations enhancement and theatre management. Further, it provides turnkey project management, and furniture fixture and equipment services to commercial cinema exhibitors for new construction and remodels, including design, consulting, and procurement of seats, screen systems, lighting, acoustical treatments, screens, projection, and sound equipment for upgrades and new professional cinema, screening room, postproduction facilities and ultra-high-end cinema builds. The company was founded in 2003 and is headquartered in Fountain Valley, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Moving iMage Technologies, Inc. has a Value Score of 96, which is considered to be undervalued.

Moving iMage Technologies, Inc.’s price-to-book ratio is lower than its peers. This could make Moving iMage Technologies, Inc. fairly attractive for value investors when compared to the industry median at 1.13.

You can read more about Moving iMage Technologies, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Motorsport Games Inc.’s Value Grade

Value Grade:

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Driven Lifestyle Group LLC.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Motorsport Games Inc. has a Value Score of 81, which is considered to be undervalued.

Motorsport Games Inc.’s price-earnings ratio is 2.3 compared to the industry median at 27.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Motorsport Games Inc. more attractive for value investors.

Motorsport Games Inc.’s price-to-book ratio is lower than its peers. This could make Motorsport Games Inc. more attractive for value investors when compared to the industry median at 1.13.

You can read more about Motorsport Games Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Reading International, Inc.’s Value Grade

Value Grade:

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Reading International, Inc. has a Value Score of 81, which is considered to be undervalued.

Reading International, Inc.’s price-to-book ratio is higher than its peers. This could make Reading International, Inc. less attractive for value investors when compared to the industry median at 1.13.

You can read more about Reading International, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Entertainment Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Entertainment stocks as well as other industrys.

Choosing Which of the 7 Best Entertainment Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Blue Hat Interactive Entertainment Technology stock has a Value Grade of B.
• Dolphin Entertainment, Inc. stock has a Value Grade of B.
• HUYA Inc. stock has a Value Grade of A.
• Lions Gate Entertainment Corp. stock has a Value Grade of B.
• Moving iMage Technologies, Inc. stock has a Value Grade of A.
• Motorsport Games Inc. stock has a Value Grade of A.
• Reading International, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Entertainment industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Entertainment Stocks

Want to learn more about Entertainment stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Entertainment Stocks for Thursday, October 24
• 7 Undervalued Entertainment Stocks for Wednesday, October 23
• 5 Undervalued Entertainment Stocks for Tuesday, October 22
• 6 Undervalued Entertainment Stocks for Monday, October 21

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.