Critical Analysis: AMC Entertainment (NYSE:AMC) versus Royal Olympic Cruise Lines (OTCMKTS:ROCLF)

AMC Entertainment (NYSE:AMC) and Royal Olympic Cruise Lines (OTCMKTS:ROCLF) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider & Institutional Ownership

28.8% of AMC Entertainment shares are held by institutional investors. 0.4% of AMC Entertainment shares are held by insiders. Comparatively, 64.1% of Royal Olympic Cruise Lines shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares AMC Entertainment and Royal Olympic Cruise Lines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMC Entertainment	-10.88%	N/A	-5.00%
Royal Olympic Cruise Lines	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for AMC Entertainment and Royal Olympic Cruise Lines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMC Entertainment	2	4	2	0	2.00
Royal Olympic Cruise Lines	0	0	0	0	0.00

AMC Entertainment presently has a consensus target price of $2.24, indicating a potential upside of 47.85%. Given AMC Entertainment’s stronger consensus rating and higher probable upside, equities analysts clearly believe AMC Entertainment is more favorable than Royal Olympic Cruise Lines.

Earnings & Valuation

This table compares AMC Entertainment and Royal Olympic Cruise Lines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMC Entertainment	$4.85 billion	0.19	-$632.40 million	($1.06)	-1.43
Royal Olympic Cruise Lines	N/A	N/A	N/A	N/A	N/A

Royal Olympic Cruise Lines has lower revenue, but higher earnings than AMC Entertainment.

Summary

AMC Entertainment beats Royal Olympic Cruise Lines on 5 of the 8 factors compared between the two stocks.

About AMC Entertainment

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 Royal Olympic Cruise Lines

Royal Olympic Cruise Lines, Inc. engages in the ownership, operation, and management of a fleet of cruise ships. The company also provides services under management agreements for other cruise vessels, for which a management fee is charged. Its fleet, in 2002, consisted of seven overnight cruise ships, ranging in capacity from approximately 450 to 836 passengers. The geographical areas served by the company include the eastern and western Mediterranean, South and Central America, the Caribbean, South Africa, and the Far East. Its competitors include Costa Crociere SpA, Mediterranean Shipping Cruises Limited, P&O Cruises Limited, and Holland America. The company was founded in 1938 and is based in Piraeus, Greece.