Head-To-Head Survey: Six Flags Entertainment (NYSE:FUN) and AMC Entertainment (NYSE:AMC)

Six Flags Entertainment (NYSE:FUN) and AMC Entertainment (NYSE:AMC) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

64.7% of Six Flags Entertainment shares are owned by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are owned by institutional investors. 1.8% of Six Flags Entertainment shares are owned by insiders. Comparatively, 0.4% of AMC Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Six Flags Entertainment and AMC Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Six Flags Entertainment	-56.44%	9.64%	1.70%
AMC Entertainment	-13.16%	N/A	-5.27%

Volatility & Risk

Six Flags Entertainment has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Valuation & Earnings

This table compares Six Flags Entertainment and AMC Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Six Flags Entertainment	$2.71 billion	0.57	-$231.16 million	($17.72)	-0.85
AMC Entertainment	$4.87 billion	0.24	-$352.60 million	($1.41)	-1.61

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

Analyst Ratings

This is a summary of recent ratings and target prices for Six Flags Entertainment and AMC Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Six Flags Entertainment	2	4	9	0	2.47
AMC Entertainment	2	6	1	0	1.89

Six Flags Entertainment currently has a consensus price target of $28.29, indicating a potential upside of 87.20%. AMC Entertainment has a consensus price target of $3.26, indicating a potential upside of 43.86%. Given Six Flags Entertainment’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Six Flags Entertainment is more favorable than AMC Entertainment.

Summary

Six Flags Entertainment beats AMC Entertainment on 10 of the 14 factors compared between the two stocks.

About Six Flags Entertainment

Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.

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.