Head to Head Analysis: Townsquare Media (NYSE:TSQ) and AMC Networks (NASDAQ:AMCX)

Townsquare Media (NYSE:TSQ) and AMC Networks (NASDAQ:AMCX) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Townsquare Media and AMC Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Townsquare Media	7.93%	-56.87%	3.43%
AMC Networks	-7.42%	15.73%	3.47%

Analyst Ratings

This is a breakdown of current ratings for Townsquare Media and AMC Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Townsquare Media	0	0	2	0	3.00
AMC Networks	4	0	0	1	1.60

Townsquare Media presently has a consensus price target of $17.00, suggesting a potential upside of 156.41%. AMC Networks has a consensus price target of $5.38, suggesting a potential downside of 35.01%. Given Townsquare Media’s stronger consensus rating and higher possible upside, analysts plainly believe Townsquare Media is more favorable than AMC Networks.

Institutional and Insider Ownership

71.7% of Townsquare Media shares are held by institutional investors. Comparatively, 78.5% of AMC Networks shares are held by institutional investors. 30.5% of Townsquare Media shares are held by insiders. Comparatively, 15.6% of AMC Networks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Townsquare Media has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Valuation and Earnings

This table compares Townsquare Media and AMC Networks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Townsquare Media	$450.98 million	0.24	-$10.93 million	$2.02	3.28
AMC Networks	$2.42 billion	0.15	-$226.55 million	($4.37)	-1.89

Townsquare Media has higher earnings, but lower revenue than AMC Networks. AMC Networks is trading at a lower price-to-earnings ratio than Townsquare Media, indicating that it is currently the more affordable of the two stocks.

Summary

Townsquare Media beats AMC Networks on 9 of the 15 factors compared between the two stocks.

About Townsquare Media

Townsquare Media, Inc. operates as a digital media and marketing solutions company in small and medium-sized businesses. It operates through three segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. The Subscription Digital Marketing Solutions segment offers website design, creation, and development, as well as hosting services; and search engine optimization, online directory optimization, e-commerce solutions, online reputation monitoring, social media management, appointment scheduling, payment and invoice, customer management, and email and SMS marketing services. The Digital Advertising segment provides digital advertising on its owned and operated, digital programmatic advertising, and data analytics and management platform. The Broadcast Advertising segment engages in the sale of advertising on local radio stations to local, regional, and national spot advertisers, as well as national network advertisers. It also owns and operates live events, including concerts, expositions, and other experiential events; and operates local media under the WYRK.com, WJON.com, and NJ101.5.com brands, as well as national music under the XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com brands. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. is headquartered in Purchase, New York.

About AMC Networks

AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences, a platform to distributors, and advertisers in the United States, Europe, and internationally. The company operates through Domestic Operations, and International and Other segments. The Domestic Operations segment operates various national programming networks, including the AMC, We tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films, RLJ Entertainment Films, and Shudder name. This segment also produces and licenses original programming for various programming networks, as well as services the programming networks. The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.