Sphere Entertainment (NYSE:SPHR – Get Free Report) and AMC Entertainment (NYSE:AMC – Get Free Report) are both mid-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Profitability
This table compares Sphere Entertainment and AMC Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sphere Entertainment | -6.19% | -1.38% | -0.74% |
| AMC Entertainment | -10.59% | N/A | -3.71% |
Volatility and Risk
Sphere Entertainment has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sphere Entertainment | $1.22 billion | 4.10 | $33.40 million | ($2.68) | -52.00 |
| AMC Entertainment | $4.85 billion | 0.61 | -$632.40 million | ($1.07) | -3.08 |
Sphere Entertainment has higher earnings, but lower revenue than AMC Entertainment. Sphere Entertainment is trading at a lower price-to-earnings ratio than AMC Entertainment, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.0% of Sphere Entertainment shares are held by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are held by institutional investors. 22.1% of Sphere Entertainment 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sphere Entertainment and AMC Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sphere Entertainment | 0 | 2 | 12 | 0 | 2.86 |
| AMC Entertainment | 2 | 4 | 3 | 1 | 2.30 |
Sphere Entertainment presently has a consensus target price of $166.00, indicating a potential upside of 19.11%. AMC Entertainment has a consensus target price of $2.67, indicating a potential downside of 18.92%. Given Sphere Entertainment’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sphere Entertainment is more favorable than AMC Entertainment.
Summary
Sphere Entertainment beats AMC Entertainment on 9 of the 15 factors compared between the two stocks.
About Sphere Entertainment
Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates entertainment dining and nightlife venues markets under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.
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.
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