AMC Entertainment (NYSE:AMC – Get Free Report) and Giftify (NASDAQ:GIFT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Analyst Recommendations
This is a summary of recent ratings for AMC Entertainment and Giftify, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AMC Entertainment | 1 | 5 | 1 | 0 | 2.00 |
| Giftify | 0 | 0 | 1 | 0 | 3.00 |
AMC Entertainment presently has a consensus target price of $3.33, suggesting a potential upside of 18.33%. Giftify has a consensus target price of $4.00, suggesting a potential upside of 260.36%. Given Giftify’s stronger consensus rating and higher probable upside, analysts clearly believe Giftify is more favorable than AMC Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| AMC Entertainment | -7.39% | N/A | -4.07% |
| Giftify | -15.13% | -63.88% | -39.60% |
Insider & Institutional Ownership
28.8% of AMC Entertainment shares are owned by institutional investors. 0.3% of AMC Entertainment shares are owned by company insiders. Comparatively, 20.5% of Giftify shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares AMC Entertainment and Giftify”s gross 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 | 0.31 | -$352.60 million | ($0.89) | -3.16 |
| Giftify | $88.93 million | 0.38 | -$18.83 million | ($0.50) | -2.22 |
Giftify has lower revenue, but higher earnings than AMC Entertainment. AMC Entertainment is trading at a lower price-to-earnings ratio than Giftify, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
AMC Entertainment has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Giftify has a beta of -1.43, meaning that its share price is 243% less volatile than the S&P 500.
Summary
Giftify beats AMC Entertainment on 7 of the 13 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 Giftify
RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.
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