Critical Review: Cedar Fair (NYSE:FUN) versus Kidoz (OTCMKTS:KDOZF)

Kidoz (OTCMKTS:KDOZF) and Cedar Fair (NYSE:FUN) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Valuation & Earnings

This table compares Kidoz and Cedar Fair”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kidoz	$13.33 million	0.31	-$2.01 million	($0.02)	-1.55
Cedar Fair	$1.82 billion	1.20	$124.56 million	$2.43	17.46

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kidoz	-11.76%	-23.07%	-16.45%
Cedar Fair	6.80%	-23.97%	6.70%

Institutional & Insider Ownership

64.7% of Cedar Fair shares are held by institutional investors. 20.5% of Kidoz 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, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Kidoz has a beta of -1.59, suggesting that its share price is 259% less volatile than the S&P 500. Comparatively, Cedar Fair has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kidoz and Cedar Fair, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kidoz	0	0	0	0	N/A
Cedar Fair	1	1	11	0	2.77

Cedar Fair has a consensus target price of $55.46, suggesting a potential upside of 30.74%. Given Cedar Fair’s higher probable upside, analysts clearly believe Cedar Fair is more favorable than Kidoz.

Summary

Cedar Fair beats Kidoz on 11 of the 13 factors compared between the two stocks.

About Kidoz

Kidoz Inc. develops and sells AdTech software products in Western Europe; Central, Eastern, and Southern Europe; North America; and internationally. The company also owns and develops mobile Kidoz safe ad network, the Kidoz kid-mode operating system, the Kidoz publisher SDK, the Rooplay edugames platform, and the Rooplay originals. In addition, it offers Rooplay, the cloud-based EduGame system for kids to learn and play. The company was formerly known as Shoal Games Ltd. and changed its name to Kidoz Inc. in April 2019. Kidoz Inc. was incorporated in 1987 and is based in Vancouver, Canada.

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.