Contrasting AMC Entertainment (NYSE:AMC) and TKO Group (NYSE:TKO)

TKO Group (NYSE:TKO) and AMC Entertainment (NYSE:AMC) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings for TKO Group and AMC Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TKO Group	0	6	11	0	2.65
AMC Entertainment	2	4	3	1	2.30

TKO Group presently has a consensus target price of $238.08, indicating a potential upside of 23.62%. AMC Entertainment has a consensus target price of $2.53, indicating a potential upside of 1.35%. Given TKO Group’s stronger consensus rating and higher possible upside, research analysts plainly believe TKO Group is more favorable than AMC Entertainment.

Insider & Institutional Ownership

89.8% of TKO Group shares are held by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are held by institutional investors. 64.3% of TKO Group shares are held by insiders. Comparatively, 0.6% 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.

Valuation and Earnings

This table compares TKO Group and AMC Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TKO Group	$5.30 billion	6.88	$195.40 million	$2.85	67.58
AMC Entertainment	$4.85 billion	0.46	-$632.40 million	($1.07)	-2.33

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

Volatility & Risk

TKO Group has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TKO Group	4.33%	2.67%	1.49%
AMC Entertainment	-10.59%	N/A	-3.71%

Summary

TKO Group beats AMC Entertainment on 13 of the 15 factors compared between the two stocks.

About TKO Group

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.

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.