AMC NETWORKS INC Common Stock (NYSE: ATUS) and Altice USA (NYSE:ATUS) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares AMC NETWORKS INC Common Stock and Altice USA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AMC NETWORKS INC Common Stock $2.81 billion 1.23 $471.31 million $7.37 8.20
Altice USA $9.33 billion 1.38 $1.52 billion $0.02 875.00

Altice USA has higher revenue and earnings than AMC NETWORKS INC Common Stock. AMC NETWORKS INC Common Stock is trading at a lower price-to-earnings ratio than Altice USA, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

86.8% of AMC NETWORKS INC Common Stock shares are held by institutional investors. Comparatively, 20.1% of Altice USA shares are held by institutional investors. 21.0% of AMC NETWORKS INC Common Stock shares are held by company insiders. Comparatively, 2.0% of Altice USA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AMC NETWORKS INC Common Stock and Altice USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMC NETWORKS INC Common Stock 17.22% 278.30% 9.74%
Altice USA 19.65% -5.44% -0.70%

Analyst Recommendations

This is a summary of current ratings for AMC NETWORKS INC Common Stock and Altice USA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMC NETWORKS INC Common Stock 1 12 2 0 2.07
Altice USA 0 2 17 1 2.95

AMC NETWORKS INC Common Stock presently has a consensus price target of $61.70, indicating a potential upside of 2.07%. Altice USA has a consensus price target of $26.19, indicating a potential upside of 49.68%. Given Altice USA’s stronger consensus rating and higher possible upside, analysts clearly believe Altice USA is more favorable than AMC NETWORKS INC Common Stock.

Risk & Volatility

AMC NETWORKS INC Common Stock has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Altice USA has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Summary

Altice USA beats AMC NETWORKS INC Common Stock on 9 of the 15 factors compared between the two stocks.

About AMC NETWORKS INC Common Stock

AMC Networks Inc. owns and operates various cable television's brands delivering content to audiences, and a platform to distributors and advertisers in the United States and internationally. The company operates in two segments, National Networks; and International and Other. The National Networks segment operates five distributed entertainment programming networks under the AMC, WE tv, BBC AMERICA, IFC, and SundanceTV names in high definition and standard definition formats. This segment distributes its networks in the United States through cable and other multichannel video programming distribution platforms, such as direct broadcast satellite and platforms operated by telecommunications providers. The International and Other segment delivers entertaining and acclaimed programming services for subscribers in approximately 140 countries and territories, including Europe, Latin America, the Middle East, and the parts of Asia and Africa. This segment also operates in independent film distribution business that distributes films across various media platforms, including theaters, cable/satellite video on demand, cable network television, streaming/downloading to internet-connected screens, and DVDs. The company also provides subscription streaming services. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.

About Altice USA

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States. The company operates in two segments, Cablevision and Cequel. It delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content, and advertising services to approximately 4.9 million residential and business customers. The company also offers wireless routers and Internet security software; and pay television services, which include delivery of broadcast stations and cable networks, and advanced digital pay television services, such as video-on-demand, high-definition channels, digital video recorder, and pay-per-view. In addition, it provides Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony, managed Wi-Fi, managed desktop and server backup services; managed collaboration services, including audio and Web conferencing; managed services, including business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; data-driven television, digital, and other multi-platform advertising services; and data-driven and audience-based advertising solutions. Further, the company operates local news channels, as well as traffic and weather channels; News12.com, a destination for local news on the Web; and News 12 To Go, a mobile app for phones and tablets. Altice USA, Inc. is headquartered in Long Island City, New York. Altice Europe N.V. was previously known as Altice USA, Inc. As a result of its separation from Altice N.V., Altice Europe N.V. changed its name. Altice Europe N.V. operates independently of Altice N.V. as of June 8, 2018.

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