AMC Networks (NASDAQ: AMCX) and Discovery Communications (NASDAQ:DISCK) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.
Institutional & Insider Ownership
81.9% of AMC Networks shares are owned by institutional investors. Comparatively, 46.8% of Discovery Communications shares are owned by institutional investors. 17.7% of AMC Networks shares are owned by company insiders. Comparatively, 5.0% of Discovery Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for AMC Networks and Discovery Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AMC Networks presently has a consensus target price of $59.44, indicating a potential downside of 3.22%. Given AMC Networks’ stronger consensus rating and higher possible upside, equities analysts plainly believe AMC Networks is more favorable than Discovery Communications.
Valuation & Earnings
This table compares AMC Networks and Discovery Communications’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AMC Networks||$2.79 billion||1.47||$859.59 million||$4.63||13.27|
|Discovery Communications||$6.59 billion||1.89||$2.48 billion||$1.89||11.57|
Discovery Communications has higher revenue and earnings than AMC Networks. Discovery Communications is trading at a lower price-to-earnings ratio than AMC Networks, indicating that it is currently the more affordable of the two stocks.
This table compares AMC Networks and Discovery Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
AMC Networks has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Discovery Communications has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
AMC Networks beats Discovery Communications on 8 of the 14 factors compared between the two stocks.
AMC Networks Company Profile
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.
Discovery Communications Company Profile
Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company’s portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.
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