AMC Entertainment vs Cinemark Which Is More Reliable?

AMC Entertainment and Cinemark are two of the largest cinema chains in the United States. Both companies have been impacted by the COVID-19 pandemic, with theater closures and reduced capacity leading to significant financial challenges. While AMC has garnered attention from retail investors through social media platforms like Reddit, Cinemark has maintained a more stable financial position. Investors are closely watching the performance of both stocks as the entertainment industry continues to navigate uncertain times.

AMC Entertainment or Cinemark?

When comparing AMC Entertainment and Cinemark, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AMC Entertainment and Cinemark.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AMC Entertainment has a dividend yield of -%, while Cinemark has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AMC Entertainment reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Cinemark reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AMC Entertainment P/E ratio at -3.79 and Cinemark's P/E ratio at 16.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AMC Entertainment P/B ratio is -0.90 while Cinemark's P/B ratio is 6.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AMC Entertainment has seen a 5-year revenue growth of -0.94%, while Cinemark's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMC Entertainment's ROE at 21.98% and Cinemark's ROE at 61.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.16 for AMC Entertainment and $32.14 for Cinemark. Over the past year, AMC Entertainment's prices ranged from $2.38 to $11.88, with a yearly change of 399.16%. Cinemark's prices fluctuated between $13.19 and $36.28, with a yearly change of 175.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.