Contrasting AMC Networks (NASDAQ:AMCX) & MNTN (NYSE:MNTN)

MNTN (NYSE:MNTN) and AMC Networks (NASDAQ:AMCX) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

72.9% of MNTN shares are held by institutional investors. Comparatively, 78.5% of AMC Networks shares are held by institutional investors. 19.6% of MNTN shares are held by company insiders. Comparatively, 16.1% of AMC Networks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MNTN	17.81%	18.46%	15.31%
AMC Networks	-6.38%	5.58%	1.41%

Analyst Ratings

This is a summary of recent ratings and recommmendations for MNTN and AMC Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MNTN	1	6	5	1	2.46
AMC Networks	3	2	0	0	1.40

MNTN currently has a consensus price target of $14.15, indicating a potential upside of 185.05%. AMC Networks has a consensus price target of $10.00, indicating a potential upside of 4.28%. Given MNTN’s stronger consensus rating and higher probable upside, analysts clearly believe MNTN is more favorable than AMC Networks.

Risk and Volatility

MNTN has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MNTN	$290.09 million	1.06	-$6.43 million	$0.73	6.80
AMC Networks	$2.25 billion	0.18	$89.40 million	($3.33)	-2.88

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

Summary

MNTN beats AMC Networks on 11 of the 15 factors compared between the two stocks.

About MNTN

MNTN, Inc. provides advertising software focused on connected television (CTV). Its platform helps businesses plan, launch, manage and measure advertising campaigns on streaming TV, with tools designed to make CTV advertising accessible to performance-focused marketers. The company’s services include audience targeting, campaign optimization and measurement capabilities. MNTN also expanded its video-production offerings through its acquisition of QuickFrame, a platform that connects brands with video creators.

About AMC Networks

AMC Networks is a global entertainment company that develops, produces and distributes television and streaming content. Its programming includes original drama, unscripted series, films and other entertainment across a portfolio of cable networks and digital services. The company’s brands include AMC, BBC America, IFC, SundanceTV and WE tv, as well as streaming services such as AMC+, Acorn TV, Shudder, Sundance Now and ALLBLK. AMC Networks also distributes content through licensing and other partnerships.