AMC Entertainment (NYSE:AMC) versus United Parks & Resorts (NYSE:PRKS) Critical Analysis

United Parks & Resorts (NYSE:PRKS) and AMC Entertainment (NYSE:AMC) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

28.8% of AMC Entertainment shares are held by institutional investors. 1.2% of United Parks & Resorts shares are held by insiders. Comparatively, 0.4% of AMC Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

United Parks & Resorts has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares United Parks & Resorts and AMC Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Parks & Resorts	10.83%	-44.47%	6.88%
AMC Entertainment	-13.16%	N/A	-5.27%

Valuation and Earnings

This table compares United Parks & Resorts and AMC Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parks & Resorts	$1.73 billion	1.12	$227.50 million	$3.27	10.87
AMC Entertainment	$4.64 billion	0.25	-$352.60 million	($1.41)	-1.61

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for United Parks & Resorts and AMC Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parks & Resorts	2	7	4	0	2.15
AMC Entertainment	2	6	1	0	1.89

United Parks & Resorts currently has a consensus price target of $50.82, suggesting a potential upside of 43.00%. AMC Entertainment has a consensus price target of $3.26, suggesting a potential upside of 43.54%. Given AMC Entertainment’s higher probable upside, analysts clearly believe AMC Entertainment is more favorable than United Parks & Resorts.

Summary

United Parks & Resorts beats AMC Entertainment on 10 of the 14 factors compared between the two stocks.

About United Parks & Resorts

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

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.