AMC Networks (NASDAQ:AMCX) and Netflix (NASDAQ:NFLX) Head to Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Netflix	24.30%	43.26%	20.36%
AMC Networks	-6.03%	11.67%	2.62%

Volatility and Risk

Netflix has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

80.9% of Netflix shares are owned by institutional investors. Comparatively, 78.5% of AMC Networks shares are owned by institutional investors. 1.4% of Netflix shares are owned by insiders. Comparatively, 15.6% of AMC Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netflix	$45.18 billion	7.80	$10.98 billion	$2.53	33.00
AMC Networks	$2.42 billion	0.14	-$226.55 million	($3.75)	-2.06

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Netflix and AMC Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netflix	0	17	33	2	2.71
AMC Networks	4	2	0	0	1.33

Netflix currently has a consensus price target of $116.17, indicating a potential upside of 39.15%. AMC Networks has a consensus price target of $6.50, indicating a potential downside of 15.69%. Given Netflix’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Netflix is more favorable than AMC Networks.

Summary

Netflix beats AMC Networks on 14 of the 15 factors compared between the two stocks.

About Netflix

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.

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.