AMC Networks (NASDAQ: AMCX) and Twenty-First Century Fox (NASDAQ:FOXA) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitabiliy and risk.

Risk and Volatility

AMC Networks has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Twenty-First Century Fox has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Institutional and Insider Ownership

82.0% of AMC Networks shares are owned by institutional investors. Comparatively, 55.1% of Twenty-First Century Fox shares are owned by institutional investors. 17.7% of AMC Networks shares are owned by company insiders. Comparatively, 20.1% of Twenty-First Century Fox shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares AMC Networks and Twenty-First Century Fox’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AMC Networks $2.77 billion 1.34 $845.29 million $4.14 13.49
Twenty-First Century Fox $28.40 billion 1.79 $7.01 billion $1.63 16.84

Twenty-First Century Fox has higher revenue and earnings than AMC Networks. AMC Networks is trading at a lower price-to-earnings ratio than Twenty-First Century Fox, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AMC Networks and Twenty-First Century Fox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMC Networks 10.59% 502.40% 8.63%
Twenty-First Century Fox 10.72% 24.40% 7.65%

Analyst Ratings

This is a breakdown of current recommendations for AMC Networks and Twenty-First Century Fox, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMC Networks 1 8 7 0 2.38
Twenty-First Century Fox 0 4 16 0 2.80

AMC Networks presently has a consensus price target of $60.58, suggesting a potential upside of 8.51%. Twenty-First Century Fox has a consensus price target of $33.28, suggesting a potential upside of 21.23%. Given Twenty-First Century Fox’s stronger consensus rating and higher possible upside, analysts plainly believe Twenty-First Century Fox is more favorable than AMC Networks.

Dividends

Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. AMC Networks does not pay a dividend. Twenty-First Century Fox pays out 22.1% of its earnings in the form of a dividend.

Summary

Twenty-First Century Fox beats AMC Networks on 11 of the 16 factors compared between the two stocks.

About AMC Networks

AMC Networks Inc. is a holding company, which conducts all of its operations through its subsidiaries. The Company owns and operates entertainment businesses and assets. It operates through two segments: National Networks, and International and Other. National Networks includes activities of its programming businesses, which include its programming networks distributed in the United States and Canada. The International and Other segment includes AMC Networks International (AMCNI), the Company’s international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East and parts of Asia and Africa; IFC Films, the Company’s independent film distribution business; AMCNI- DMC, the broadcast solutions unit of certain networks of AMCNI and third-party networks, and various developing online content distribution initiatives. National Networks’ programming networks include AMC, WE tv, BBC AMERICA and SundanceTV.

About Twenty-First Century Fox

Twenty-First Century Fox, Inc. is a media and entertainment company. The Company’s segments include Cable Network Programming; Television; Filmed Entertainment, and Other, Corporate and Eliminations. The Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution. The Television segment is engaged in the operation of broadcast television stations and the broadcasting of network programming in the United States. The Filmed Entertainment segment is engaged in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media, and the production and licensing of television programming around the world. The Other, Corporate and Eliminations segment consists primarily of corporate overhead and eliminations, and other businesses.

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