Head to Head Analysis: AMC Entertainment (NYSE:AMC) vs. Airbnb (NASDAQ:ABNB)

AMC Entertainment (NYSE:AMCGet Free Report) and Airbnb (NASDAQ:ABNBGet Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

AMC Entertainment has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for AMC Entertainment and Airbnb, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMC Entertainment 2 6 1 0 1.89
Airbnb 5 19 12 3 2.33

AMC Entertainment presently has a consensus price target of $3.26, indicating a potential upside of 93.26%. Airbnb has a consensus price target of $144.48, indicating a potential upside of 5.76%. Given AMC Entertainment’s higher possible upside, analysts clearly believe AMC Entertainment is more favorable than Airbnb.

Profitability

This table compares AMC Entertainment and Airbnb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMC Entertainment -13.16% N/A -5.27%
Airbnb 22.03% 32.14% 10.95%

Insider & Institutional Ownership

28.8% of AMC Entertainment shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 0.4% of AMC Entertainment shares are held by insiders. Comparatively, 27.9% of Airbnb shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares AMC Entertainment and Airbnb”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AMC Entertainment $4.64 billion 0.19 -$352.60 million ($1.41) -1.20
Airbnb $11.10 billion 7.57 $2.65 billion $4.21 32.45

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

Summary

Airbnb beats AMC Entertainment on 14 of the 15 factors compared between the two stocks.

About AMC Entertainment

(Get Free Report)

AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. It owns, operates, or has interests in theatres in the United States and Europe. The company was founded in 1920 and is headquartered in Leawood, Kansas.

About Airbnb

(Get Free Report)

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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