Critical Contrast: AMC Entertainment (NYSE:AMC) versus Flight Centre (OTCMKTS:FGETF)

Flight Centre (OTCMKTS:FGETF) and AMC Entertainment (NYSE:AMC) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Institutional and Insider Ownership

28.8% of AMC Entertainment shares are held by institutional investors. 0.4% of AMC Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Flight Centre and AMC Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flight Centre	N/A	N/A	N/A
AMC Entertainment	-7.39%	N/A	-4.07%

Volatility & Risk

Flight Centre has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Flight Centre and AMC Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flight Centre	0	0	1	1	3.50
AMC Entertainment	2	6	1	0	1.89

AMC Entertainment has a consensus price target of $3.26, indicating a potential upside of 48.44%. Given AMC Entertainment’s higher probable upside, analysts clearly believe AMC Entertainment is more favorable than Flight Centre.

Valuation & Earnings

This table compares Flight Centre and AMC Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flight Centre	$1.80 billion	0.99	$70.90 million	N/A	N/A
AMC Entertainment	$4.87 billion	0.23	-$352.60 million	($1.41)	-1.56

Flight Centre has higher earnings, but lower revenue than AMC Entertainment.

Summary

Flight Centre beats AMC Entertainment on 6 of the 11 factors compared between the two stocks.

About Flight Centre

Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets. It also provides tour operations, hotel management, and destination management services. In addition, the company offers other travel related services, including foreign currency exchange and travel academies; recruitment marketing and bike retailing; and employee benefit services. It provides its services primarily under the Flight Centre brand, as well as other travel brands, such as Student Flights, Travel Associates, Liberty Travel, Infinity Holidays, GOGO Vacations, FCm Travel Solutions, Corporate Traveller, Stage and Screen, and cievents. The company was formerly known as Flight Centre Limited and changed its name to Flight Centre Travel Group Limited in November 2013. The company was incorporated in 1987 and is headquartered in South Brisbane, Australia.

About AMC Entertainment

AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. It owns, operates, or has interests in theatres in the United States and Europe. The company was founded in 1920 and is headquartered in Leawood, Kansas.