Reviewing FOX (NASDAQ:FOXA) & AMC Networks (NASDAQ:AMCX)

AMC Networks (NASDAQ:AMCX) and FOX (NASDAQ:FOXA) are both communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

78.5% of AMC Networks shares are held by institutional investors. Comparatively, 52.5% of FOX shares are held by institutional investors. 16.1% of AMC Networks shares are held by insiders. Comparatively, 20.9% of FOX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

AMC Networks has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, FOX has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares AMC Networks and FOX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMC Networks	-0.88%	3.76%	0.96%
FOX	11.30%	23.96%	12.52%

Earnings & Valuation

This table compares AMC Networks and FOX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMC Networks	$2.31 billion	0.15	$89.40 million	($0.82)	-10.23
FOX	$17.13 billion	1.63	$1.69 billion	$4.71	14.15

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

Analyst Ratings

This is a summary of recent recommendations for AMC Networks and FOX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMC Networks	3	2	0	0	1.40
FOX	0	11	13	2	2.65

AMC Networks currently has a consensus target price of $10.00, suggesting a potential upside of 19.19%. FOX has a consensus target price of $79.16, suggesting a potential upside of 18.78%. Given AMC Networks’ higher probable upside, equities analysts clearly believe AMC Networks is more favorable than FOX.

Summary

FOX beats AMC Networks on 12 of the 15 factors compared between the two stocks.

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.

About FOX

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.