AMC Networks (NASDAQ: AMCX) and Shaw Communications (NYSE:SJR) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Earnings & Valuation
This table compares AMC Networks and Shaw Communications’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AMC Networks||$2.81 billion||1.08||$471.31 million||$7.20||6.91|
|Shaw Communications||$3.70 billion||2.42||$644.63 million||$1.38||13.64|
Shaw Communications has higher revenue and earnings than AMC Networks. AMC Networks is trading at a lower price-to-earnings ratio than Shaw Communications, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
AMC Networks has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Shaw Communications has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
Shaw Communications pays an annual dividend of $0.95 per share and has a dividend yield of 5.0%. AMC Networks does not pay a dividend. Shaw Communications pays out 68.8% of its earnings in the form of a dividend.
Insider & Institutional Ownership
90.4% of AMC Networks shares are held by institutional investors. Comparatively, 54.0% of Shaw Communications shares are held by institutional investors. 17.7% of AMC Networks shares are held by insiders. Comparatively, 1.0% of Shaw Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares AMC Networks and Shaw Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for AMC Networks and Shaw Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AMC Networks presently has a consensus price target of $59.40, suggesting a potential upside of 19.47%. Shaw Communications has a consensus price target of $27.33, suggesting a potential upside of 45.24%. Given Shaw Communications’ higher possible upside, analysts clearly believe Shaw Communications is more favorable than AMC Networks.
Shaw Communications beats AMC Networks on 8 of the 15 factors compared between the two stocks.
About AMC Networks
AMC Networks Inc. is a holding company, which conducts all of its operations through its subsidiaries. The Company owns and operates entertainment businesses and assets. It operates through two segments: National Networks, and International and Other. National Networks includes activities of its programming businesses, which include its programming networks distributed in the United States and Canada. The International and Other segment includes AMC Networks International (AMCNI), the Company’s international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East and parts of Asia and Africa; IFC Films, the Company’s independent film distribution business; AMCNI- DMC, the broadcast solutions unit of certain networks of AMCNI and third-party networks, and various developing online content distribution initiatives. National Networks’ programming networks include AMC, WE tv, BBC AMERICA and SundanceTV.
About Shaw Communications
Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.
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