Head-To-Head Contrast: AMC Networks (NASDAQ:AMCX) vs. Radio One (NASDAQ:UONEK)

AMC Networks (NASDAQ:AMCX) and Radio One (NASDAQ:UONEK) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares AMC Networks and Radio One”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMC Networks	$2.42 billion	0.14	-$226.55 million	($3.75)	-2.06
Radio One	$449.67 million	0.09	-$105.39 million	($28.40)	-0.30

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

Profitability

This table compares AMC Networks and Radio One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMC Networks	-6.03%	11.67%	2.62%
Radio One	-32.55%	1.85%	0.28%

Analyst Ratings

This is a breakdown of recent ratings for AMC Networks and Radio One, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMC Networks	4	2	0	0	1.33
Radio One	1	0	0	0	1.00

AMC Networks presently has a consensus price target of $6.50, suggesting a potential downside of 15.80%. Given AMC Networks’ stronger consensus rating and higher possible upside, research analysts plainly believe AMC Networks is more favorable than Radio One.

Volatility & Risk

AMC Networks has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Radio One has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

78.5% of AMC Networks shares are owned by institutional investors. Comparatively, 19.7% of Radio One shares are owned by institutional investors. 25.9% of AMC Networks shares are owned by insiders. Comparatively, 50.5% of Radio One shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

AMC Networks beats Radio One on 10 of the 13 factors compared between the two stocks.

About AMC Networks

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.

About Radio One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.