A Good Small Cap Bet on Movie Theatre and Lodging Business: The Marcus Corporation (MCS)

What further interests me is the high insider ownership in Marcus. Stephen Marcus, the company’s Chairman of the Board, owns nearly 4.75 million class B shares, with the aggregate voting power of 44.5%. Diane Marcus Gershowitz, a Director and the Chairman’s sister, holds nearly 3 million of class B shares, with a 29.7% aggregate voting power in the company. Gregory Marcus, the CEO, has a voting power of 2.3%. All together, they control 76.5% of the total voting power of the company.

Cheapest Valuation

With a 7.71x EV/EBITDA, Marcus is the cheapest company compared to both Marriott and Regal. Regal, with nearly $4 billion in enterprise value, is valued at 8.2x EV/EBITDA. Marriott, with $14.68 billion in enterprise value, is the most expensive company, at 10.84x EV/EBITDA. Among the three, Regal is paying the highest dividend yield of 5.9%. In the meantime, Marcus ranks second with a 2.6% yield, and Marriottt’s third with a 1.3% dividend yield.

Foolish Bottom Line

With the high insider ownership, the cheapest valuation, and a manageable debt level, Marcus seems to be a decent small cap bet for shareholders in the movie theater and lodging business.

The article A Good Small Cap Bet on Movie Theatre and Lodging Business originally appeared on Fool.com and is written by Anh HOANG.