Contrasting AMC Networks (NASDAQ:AMCX) & Entravision Communications Corporation (EVC)

AMC Networks (NASDAQ: AMCX) and Entravision Communications Corporation (NYSE:EVC) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Insider & Institutional Ownership

82.8% of AMC Networks shares are owned by institutional investors. Comparatively, 62.4% of Entravision Communications Corporation shares are owned by institutional investors. 17.7% of AMC Networks shares are owned by insiders. Comparatively, 20.7% of Entravision Communications Corporation shares are owned by 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 Ratings

This is a summary of recent ratings for AMC Networks and Entravision Communications Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMC Networks 1 6 6 0 2.38
Entravision Communications Corporation 0 2 1 0 2.33

AMC Networks currently has a consensus target price of $59.44, indicating a potential downside of 1.35%. Entravision Communications Corporation has a consensus target price of $7.00, indicating a potential upside of 23.89%. Given Entravision Communications Corporation’s higher probable upside, analysts clearly believe Entravision Communications Corporation is more favorable than AMC Networks.

Earnings & Valuation

This table compares AMC Networks and Entravision Communications Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AMC Networks $2.79 billion 1.37 $859.59 million $4.63 13.02
Entravision Communications Corporation $263.59 million 1.94 $61.52 million $0.21 26.90

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

Profitability

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

Net Margins Return on Equity Return on Assets
AMC Networks 11.40% 683.16% 9.65%
Entravision Communications Corporation 7.03% 10.05% 3.50%

Dividends

Entravision Communications Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 2.3%. AMC Networks does not pay a dividend. Entravision Communications Corporation pays out 61.9% of its earnings in the form of a dividend. Entravision Communications Corporation has raised its dividend for 3 consecutive years.

Risk and Volatility

AMC Networks has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Entravision Communications Corporation has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Summary

AMC Networks beats Entravision Communications Corporation on 10 of the 17 factors compared between the two stocks.

About AMC Networks

AMC Networks Inc. is a holding company, which conducts all of its operations through its subsidiaries. The Company owns and operates entertainment businesses and assets. It operates through two segments: National Networks, and International and Other. National Networks includes activities of its programming businesses, which include its programming networks distributed in the United States and Canada. The International and Other segment includes AMC Networks International (AMCNI), the Company’s international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East and parts of Asia and Africa; IFC Films, the Company’s independent film distribution business; AMCNI- DMC, the broadcast solutions unit of certain networks of AMCNI and third-party networks, and various developing online content distribution initiatives. National Networks’ programming networks include AMC, WE tv, BBC AMERICA and SundanceTV.

About Entravision Communications Corporation

Entravision Communications Corporation is a media company. The Company reaches and engages Hispanics in the United States and certain border markets of Mexico across media channels and advertising platforms. The Company operates through three segments: television broadcasting, radio broadcasting and digital media. As of December 31, 2016, the Company owned and operated 54 television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, District of Columbia. It owns and operates Spanish-language radio stations in the United States. As of December 31, 2016, its radio stations consisted of 38 frequency modulation (FM) and 11 amplitude modulation (AM) stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The digital media segment provides digital advertising solutions that allow advertisers to reach online Hispanic audiences throughout the United States and Mexico.

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