AMC Networks vs AMC Entertainment Which Should You Buy?

AMC Networks and AMC Entertainment are two separate companies within the entertainment industry, but their stocks are often compared and contrasted by investors. AMC Networks operates cable television channels and streaming services, focusing on original programming and popular shows. On the other hand, AMC Entertainment is a movie theater chain that has experienced fluctuations in stock value due to shifts in consumer behavior and the impact of the COVID-19 pandemic. Both companies play different roles in the entertainment sector, leading to differences in their stock performance and investor sentiment.

AMC Networks or AMC Entertainment?

When comparing AMC Networks and AMC Entertainment, 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 Networks and AMC Entertainment.

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 Networks has a dividend yield of -%, while AMC Entertainment has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AMC Networks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, AMC Entertainment 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 Networks P/E ratio at 5.10 and AMC Entertainment's P/E ratio at -4.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AMC Networks P/B ratio is 0.37 while AMC Entertainment's P/B ratio is -0.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AMC Networks has seen a 5-year revenue growth of 0.21%, while AMC Entertainment's is -0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMC Networks's ROE at 7.53% and AMC Entertainment's ROE at 21.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.15 for AMC Networks and $4.45 for AMC Entertainment. Over the past year, AMC Networks's prices ranged from $7.08 to $20.97, with a yearly change of 196.19%. AMC Entertainment's prices fluctuated between $2.38 and $11.88, with a yearly change of 399.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.