Regal Entertainment Group (NYSE: RGC) and AMC Entertainment Holdings (NYSE:AMC) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitabiliy, analyst recommendations, risk, valuation and dividends.
Dividends
Regal Entertainment Group pays an annual dividend of $0.88 per share and has a dividend yield of 4.7%. AMC Entertainment Holdings pays an annual dividend of $0.80 per share and has a dividend yield of 5.3%. Regal Entertainment Group pays out 82.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AMC Entertainment Holdings pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Regal Entertainment Group has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, AMC Entertainment Holdings has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Regal Entertainment Group and AMC Entertainment Holdings, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Regal Entertainment Group | 3 | 3 | 6 | 1 | 2.38 |
| AMC Entertainment Holdings | 1 | 4 | 9 | 0 | 2.57 |
Regal Entertainment Group presently has a consensus target price of $24.54, suggesting a potential upside of 32.07%. AMC Entertainment Holdings has a consensus target price of $31.19, suggesting a potential upside of 106.55%. Given AMC Entertainment Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe AMC Entertainment Holdings is more favorable than Regal Entertainment Group.
Profitability
This table compares Regal Entertainment Group and AMC Entertainment Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Regal Entertainment Group | 5.24% | -20.38% | 6.59% |
| AMC Entertainment Holdings | 2.56% | 6.52% | 1.77% |
Insider & Institutional Ownership
76.6% of Regal Entertainment Group shares are held by institutional investors. Comparatively, 41.4% of AMC Entertainment Holdings shares are held by institutional investors. 2.0% of Regal Entertainment Group shares are held by insiders. Comparatively, 0.8% of AMC Entertainment Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Regal Entertainment Group and AMC Entertainment Holdings’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Regal Entertainment Group | $3.21 billion | 0.77 | $583.50 million | $1.07 | 17.36 |
| AMC Entertainment Holdings | $3.75 billion | 0.53 | $642.94 million | $0.95 | 15.89 |
AMC Entertainment Holdings has higher revenue and earnings than Regal Entertainment Group. AMC Entertainment Holdings is trading at a lower price-to-earnings ratio than Regal Entertainment Group, indicating that it is currently the more affordable of the two stocks.
Summary
Regal Entertainment Group beats AMC Entertainment Holdings on 9 of the 17 factors compared between the two stocks.
About Regal Entertainment Group
Regal Entertainment Group is an operator of theatre circuits in the United States. As of March 31, 2017, the Company operated 7,262 screens in 559 theatres in 43 states along with Guam, Saipan, American Samoa and the District of Columbia. The Company manages its business under theatre exhibition operations segment. The Company develops, acquires and operates multi-screen theatres primarily in mid-sized metropolitan markets and suburban growth areas of metropolitan markets throughout the United States. The Company operates multi-screen theatres. The Company is the parent company of Regal Entertainment Holdings, Inc. (REH), which is the parent company of Regal Cinemas Corporation (Regal Cinemas) and its subsidiaries. Regal Cinemas’ subsidiaries include Regal Cinemas, Inc. (RCI) and its subsidiaries, which include Edwards Theatres, Inc. (Edwards), Regal CineMedia Corporation (RCM) and United Artists Theatre Company (United Artists).
About AMC Entertainment Holdings
AMC Entertainment Holdings, Inc. is a holding company. The Company, through its subsidiaries, including AMC Entertainment Inc. (AMCE), American Multi-Cinema, Inc. (OpCo) and its subsidiaries, is engaged in the theatrical exhibition business. It operates through theatrical exhibition operations segment. It licenses first-run motion pictures from distributors owned by film production companies and from independent distributors. The Company also offers a range of food and beverage items, which include popcorn; soft drinks; candy; hot dogs; specialty drinks, including beers, wine and mixed drinks, and made to order hot foods, including menu choices, such as curly fries, chicken tenders and mozzarella sticks. It operates over 900 theatres with approximately 10,000 screens globally, including over 661 theatres with approximately 8,200 screens in the United States and over 244 theatres with approximately 2,200 screens in Europe. The Company’s subsidiary also includes Carmike Cinemas, Inc.
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