Corus Entertainment (OTCMKTS:CJREF) & AMC Networks (NASDAQ:AMCX) Critical Contrast

AMC Networks (NASDAQ:AMCX) and Corus Entertainment (OTCMKTS:CJREF) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Volatility & Risk

AMC Networks has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Corus Entertainment has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

78.5% of AMC Networks shares are held by institutional investors. 15.6% of AMC Networks shares are held by company insiders. Comparatively, 3.5% of Corus Entertainment shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AMC Networks	-6.03%	11.67%	2.62%
Corus Entertainment	-33.38%	N/A	-6.81%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMC Networks	$2.42 billion	0.14	-$226.55 million	($3.75)	-2.13
Corus Entertainment	$807.48 million	0.01	-$235.20 million	($1.28)	-0.02

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AMC Networks and Corus Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMC Networks	4	2	0	0	1.33
Corus Entertainment	0	0	0	0	0.00

AMC Networks presently has a consensus price target of $6.50, suggesting a potential downside of 18.75%. Given AMC Networks’ stronger consensus rating and higher probable upside, equities research analysts plainly believe AMC Networks is more favorable than Corus Entertainment.

Summary

AMC Networks beats Corus Entertainment on 10 of the 13 factors compared between the two stocks.

About AMC Networks

AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences, a platform to distributors, and advertisers in the United States, Europe, and internationally. The company operates through Domestic Operations, and International and Other segments. The Domestic Operations segment operates various national programming networks, including the AMC, We tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films, RLJ Entertainment Films, and Shudder name. This segment also produces and licenses original programming for various programming networks, as well as services the programming networks. The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.

About Corus Entertainment

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally. It operates in two segments, Television and Radio. The Television segment consists of specialty television networks, conventional television stations, digital and streaming platforms, a social digital agency, and a social media creator network; and provides technology and media services. This segment also engages in the production and distribution of films and television programs; merchandise licensing and book publishing activities; and provision of advertising services, subscriptions, and the licensing of proprietary films and television programs, as well as production services. The Radio segment operates radio stations that include a network of news/talk radio stations, as well as classic hits, rock, country, and hot adult contemporary radio formats. The company produces and distributes children’s animated content and consumer products; owns Nelvana, Corus Studios, Aircraft Pictures, Kid Can Press, so.da, and Kin Community Canada, and Quay Media Services; and operates companion websites, digital and streaming platforms, and applications that are related to its brands. Corus Entertainment Inc. was incorporated in 1998 and is headquartered in Toronto, Canada.