AMC Entertainment Holdings (NYSE: AMC) and Imax Corporation (NYSE:IMAX) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitabiliy, valuation and risk.

Earnings & Valuation

This table compares AMC Entertainment Holdings and Imax Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AMC Entertainment Holdings $3.75 billion 0.53 $642.94 million $0.95 15.89
Imax Corporation $349.35 million 3.76 $72.50 million $0.14 145.01

AMC Entertainment Holdings has higher revenue and earnings than Imax Corporation. AMC Entertainment Holdings is trading at a lower price-to-earnings ratio than Imax Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

41.4% of AMC Entertainment Holdings shares are held by institutional investors. Comparatively, 88.9% of Imax Corporation shares are held by institutional investors. 0.8% of AMC Entertainment Holdings shares are held by insiders. Comparatively, 18.9% of Imax Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AMC Entertainment Holdings and Imax Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMC Entertainment Holdings 2.56% 6.52% 1.77%
Imax Corporation 2.81% 2.39% 1.72%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AMC Entertainment Holdings and Imax Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMC Entertainment Holdings 1 4 9 0 2.57
Imax Corporation 0 3 8 0 2.73

AMC Entertainment Holdings currently has a consensus price target of $31.19, suggesting a potential upside of 106.55%. Imax Corporation has a consensus price target of $35.60, suggesting a potential upside of 75.37%. Given AMC Entertainment Holdings’ higher possible upside, equities research analysts clearly believe AMC Entertainment Holdings is more favorable than Imax Corporation.

Dividends

AMC Entertainment Holdings pays an annual dividend of $0.80 per share and has a dividend yield of 5.3%. Imax Corporation does not pay a dividend. AMC Entertainment Holdings pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

AMC Entertainment Holdings has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Imax Corporation has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Summary

AMC Entertainment Holdings beats Imax Corporation on 9 of the 16 factors compared between the two stocks.

About AMC Entertainment Holdings

AMC Entertainment Holdings, Inc. is a holding company. The Company, through its subsidiaries, including AMC Entertainment Inc. (AMCE), American Multi-Cinema, Inc. (OpCo) and its subsidiaries, is engaged in the theatrical exhibition business. It operates through theatrical exhibition operations segment. It licenses first-run motion pictures from distributors owned by film production companies and from independent distributors. The Company also offers a range of food and beverage items, which include popcorn; soft drinks; candy; hot dogs; specialty drinks, including beers, wine and mixed drinks, and made to order hot foods, including menu choices, such as curly fries, chicken tenders and mozzarella sticks. It operates over 900 theatres with approximately 10,000 screens globally, including over 661 theatres with approximately 8,200 screens in the United States and over 244 theatres with approximately 2,200 screens in Europe. The Company’s subsidiary also includes Carmike Cinemas, Inc.

About Imax Corporation

IMAX Corporation is an entertainment technology company. The Company operates through seven segments: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production, and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment provides IMAX theater projection system equipment to exhibitors. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films. The film post-production segment provides film post-production and film print services. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items.

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