Financial Analysis: Royal Olympic Cruise Lines (OTCMKTS:ROCLF) vs. AMC Entertainment (NYSE:AMC)

Royal Olympic Cruise Lines (OTCMKTS:ROCLF) and AMC Entertainment (NYSE:AMC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

28.8% of AMC Entertainment shares are held by institutional investors. 64.1% of Royal Olympic Cruise Lines shares are held by company insiders. Comparatively, 0.4% of AMC Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Royal Olympic Cruise Lines and AMC Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Olympic Cruise Lines	0	0	0	0	0.00
AMC Entertainment	2	4	2	0	2.00

AMC Entertainment has a consensus target price of $2.24, indicating a potential upside of 47.85%. Given AMC Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe AMC Entertainment is more favorable than Royal Olympic Cruise Lines.

Profitability

This table compares Royal Olympic Cruise Lines and AMC Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Olympic Cruise Lines	N/A	N/A	N/A
AMC Entertainment	-10.88%	N/A	-5.00%

Valuation & Earnings

This table compares Royal Olympic Cruise Lines and AMC Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Olympic Cruise Lines	N/A	N/A	N/A	N/A	N/A
AMC Entertainment	$4.85 billion	0.19	-$632.40 million	($1.06)	-1.43

Royal Olympic Cruise Lines has higher earnings, but lower revenue than AMC Entertainment.

Summary

AMC Entertainment beats Royal Olympic Cruise Lines on 5 of the 8 factors compared between the two stocks.

About Royal Olympic Cruise Lines

Royal Olympic Cruise Lines, Inc. engages in the ownership, operation, and management of a fleet of cruise ships. The company also provides services under management agreements for other cruise vessels, for which a management fee is charged. Its fleet, in 2002, consisted of seven overnight cruise ships, ranging in capacity from approximately 450 to 836 passengers. The geographical areas served by the company include the eastern and western Mediterranean, South and Central America, the Caribbean, South Africa, and the Far East. Its competitors include Costa Crociere SpA, Mediterranean Shipping Cruises Limited, P&O Cruises Limited, and Holland America. The company was founded in 1938 and is based in Piraeus, Greece.

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.