Analyzing FOX (NASDAQ:FOXA) and AMC Networks (NASDAQ:AMCX)

by · The Markets Daily

FOX (NASDAQ:FOXA – Get Free Report) and AMC Networks (NASDAQ:AMCX – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Valuation & Earnings

This table compares FOX and AMC Networks”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
FOX$17.13 billion1.55$1.69 billion$3.8316.51
AMC Networks$2.31 billion0.14$89.40 million($0.82)-9.62

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

Profitability

This table compares FOX and AMC Networks’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
FOX9.84%20.64%10.76%
AMC Networks-0.88%3.76%0.96%

Institutional & Insider Ownership

52.5% of FOX shares are owned by institutional investors. Comparatively, 78.5% of AMC Networks shares are owned by institutional investors. 20.9% of FOX shares are owned by insiders. Comparatively, 16.1% of AMC Networks shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

FOX has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for FOX and AMC Networks, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
FOX091222.70
AMC Networks32001.40

FOX currently has a consensus price target of $76.94, indicating a potential upside of 21.66%. AMC Networks has a consensus price target of $10.00, indicating a potential upside of 26.74%. Given AMC Networks’ higher possible upside, analysts plainly believe AMC Networks is more favorable than FOX.

Summary

FOX beats AMC Networks on 12 of the 15 factors compared between the two stocks.

About FOX

(Get Free Report)

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.

About AMC Networks

(Get Free Report)

AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences, a platform to distributors, and advertisers in the United States, Europe, and internationally. The company operates through Domestic Operations, and International and Other segments. The Domestic Operations segment operates various national programming networks, including the AMC, We tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films, RLJ Entertainment Films, and Shudder name. This segment also produces and licenses original programming for various programming networks, as well as services the programming networks. The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.