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

Analyst Ratings

This is a summary of recent recommendations and price targets for Entravision Communications Corporation and AMC Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entravision Communications Corporation 0 2 1 0 2.33
AMC Networks 1 7 7 0 2.40

Entravision Communications Corporation currently has a consensus price target of $7.00, indicating a potential upside of 4.48%. AMC Networks has a consensus price target of $60.45, indicating a potential downside of 2.43%. Given Entravision Communications Corporation’s higher possible upside, analysts clearly believe Entravision Communications Corporation is more favorable than AMC Networks.

Insider and Institutional Ownership

64.3% of Entravision Communications Corporation shares are owned by institutional investors. Comparatively, 82.2% of AMC Networks shares are owned by institutional investors. 20.7% of Entravision Communications Corporation shares are owned by company insiders. Comparatively, 17.7% of AMC Networks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entravision Communications Corporation $257.91 million 2.35 $64.55 million $0.23 29.13
AMC Networks $2.77 billion 1.49 $845.29 million $4.14 14.97

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.

Dividends

Entravision Communications Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 1.9%. AMC Networks does not pay a dividend. Entravision Communications Corporation pays out 56.5% of its earnings in the form of a dividend. AMC Networks has raised its dividend for 3 consecutive years.

Volatility & Risk

Entravision Communications Corporation has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Entravision Communications Corporation 8.05% 11.53% 3.97%
AMC Networks 10.59% 502.40% 8.63%

Summary

AMC Networks beats Entravision Communications Corporation on 11 of the 17 factors compared between the two stocks.

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.

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.

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