Travel + Leisure (NYSE:TNL – Get Free Report) and AMC Entertainment (NYSE:AMC – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Travel + Leisure and AMC Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Travel + Leisure | 1 | 1 | 8 | 0 | 2.70 |
| AMC Entertainment | 2 | 5 | 1 | 0 | 1.88 |
Travel + Leisure currently has a consensus price target of $62.30, suggesting a potential downside of 0.50%. AMC Entertainment has a consensus price target of $4.26, suggesting a potential upside of 43.39%. Given AMC Entertainment’s higher possible upside, analysts plainly believe AMC Entertainment is more favorable than Travel + Leisure.
Risk and Volatility
Valuation & Earnings
This table compares Travel + Leisure and AMC Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Travel + Leisure | $3.86 billion | 1.05 | $411.00 million | $5.80 | 10.80 |
| AMC Entertainment | $4.64 billion | 0.28 | -$352.60 million | ($0.98) | -3.03 |
Travel + Leisure has higher earnings, but lower revenue than AMC Entertainment. AMC Entertainment is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
87.5% of Travel + Leisure shares are held by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are held by institutional investors. 3.8% of Travel + Leisure shares are held by company insiders. Comparatively, 0.3% 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 is poised for long-term growth.
Profitability
This table compares Travel + Leisure and AMC Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Travel + Leisure | 10.14% | -47.47% | 6.15% |
| AMC Entertainment | -8.60% | N/A | -5.68% |
Summary
Travel + Leisure beats AMC Entertainment on 10 of the 14 factors compared between the two stocks.
About Travel + Leisure
Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.
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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