AMC Entertainment vs Cineplex Which Is More Attractive?

AMC Entertainment and Cineplex are two major players in the entertainment industry, particularly in the movie theater sector. Both companies have faced challenges in recent years due to the rise of streaming services and changing consumer preferences. AMC, based in the United States, has experienced a surge in popularity among retail investors, causing its stock price to skyrocket. On the other hand, Cineplex, based in Canada, has struggled to recover from the impact of the pandemic. This has led to significant differences in their stock performances and investor sentiment.

AMC Entertainment or Cineplex?

When comparing AMC Entertainment and Cineplex, 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 Cineplex.

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 Cineplex 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, Cineplex 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 Cineplex's P/E ratio at -16.37. 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 Cineplex's P/B ratio is -20.59.

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 Cineplex's is -0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMC Entertainment's ROE at 21.98% and Cineplex's ROE at 229.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.16 for AMC Entertainment and $8.85 for Cineplex. Over the past year, AMC Entertainment's prices ranged from $2.38 to $11.88, with a yearly change of 399.16%. Cineplex's prices fluctuated between $5.21 and $9.19, with a yearly change of 76.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.