CNBC's Jim Cramer on Tuesday explained why he thinks IMAX has momentum and is a more promising company than others in the movie theater business.

"At a time when the movie studios and the movie theaters are struggling, IMAX has tremendous momentum because it's proven to be the best way to sell tickets," he said. "If you're at all inclined to invest in the movie industry, IMAX seems like your best bet."

Cramer explained that IMAX's business model is different from many of its peers. Instead of operating its own theaters, the company sells or leases its theater systems to operators like AMC or Regal. IMAX also earns money from ongoing maintenance services. Cramer suggested movie theaters are eager to spend money on IMAX so they can charge moviegoers a premium for those tickets.

IMAX beat the estimates when it posted earnings in April, and CEO Richard Gelfond said on the call that it was "our best first quarter ever," raking in more than $300 million in global box office revenue. He said the company signed agreements for over 100 new and upgraded systems year-to-date, compared with 130 in all of 2024. Management also reaffirmed that it's on track to make $1.2 billion in box office receipts this year — which would be a record for the company. Cramer said he was encouraged by IMAX's growing presence abroad, especially in China. Local language films account for more and more of the outfit's business. In 2019, the category comprised 12% of the total global box office and has grown to 68% by 2025, management said.

IMAX has also been involved in lucrative domestic films — its theaters delivered 20% of the domestic opening of "Sinners," Gelfond said in April. Cramer pointed out that there are several major films designed specifically for IMAX, including "Mission Impossible — The Final Reckoning," as well as the upcoming installment in the "Avatar" series. The company doesn't seem worried about competition from streamers, Cramer suggested, noting that it has chosen to partner with major players in the field. Netflix's new "Narnia" film will first be released exclusively on IMAX screens, he said. IMAX partnered with Apple for "F1: The Movie," which has become the streamer's highest-grossing theatrical film ever. IMAX is also working on sports content and has produced its own documentaries, Cramer added.

Wall Street's expectations are high for IMAX's next quarterly report, which is set to be released later this month, Cramer said. Although he said the stock is "not exactly cheap," the company's growth potential could justify buying some shares now.

"So, if you don't have a position in IMAX already but want to, maybe put on a small position before the quarter," he said. "Please wait to see how the report goes. Maybe the stock will pull back and you can buy at a discount."

IMAX did not immediately respond to request for comment.

Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.

Disclaimer The CNBC Investing Club Charitable Trust owns shares of Apple.