TKO Group (NYSE:TKO – Get Free Report) and AMC Entertainment (NYSE:AMC – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
89.8% of TKO Group shares are owned by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are owned by institutional investors. 64.3% of TKO Group shares are owned by insiders. Comparatively, 0.6% of AMC Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for TKO Group and AMC Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TKO Group | 0 | 6 | 10 | 0 | 2.62 |
| AMC Entertainment | 2 | 4 | 3 | 1 | 2.30 |
Earnings & Valuation
This table compares TKO Group and AMC Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TKO Group | $4.74 billion | 7.65 | $195.40 million | $2.85 | 67.18 |
| AMC Entertainment | $4.85 billion | 0.53 | -$632.40 million | ($1.07) | -2.71 |
TKO Group has higher earnings, but lower revenue than AMC Entertainment. AMC Entertainment is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
TKO Group has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.
Profitability
This table compares TKO Group and AMC Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TKO Group | 4.33% | 2.67% | 1.49% |
| AMC Entertainment | -10.59% | N/A | -3.71% |
Summary
TKO Group beats AMC Entertainment on 12 of the 15 factors compared between the two stocks.
About TKO Group
TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.
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.
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