Head to Head Survey: AMC Networks (NASDAQ:AMCX) & Sinclair (NASDAQ:SBGI)

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

Volatility and Risk

Sinclair has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sinclair and AMC Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sinclair	2	2	2	0	2.00
AMC Networks	3	1	0	1	1.80

Sinclair presently has a consensus target price of $19.40, suggesting a potential upside of 40.48%. AMC Networks has a consensus target price of $10.33, suggesting a potential downside of 17.20%. Given Sinclair’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sinclair is more favorable than AMC Networks.

Insider and Institutional Ownership

41.7% of Sinclair shares are owned by institutional investors. Comparatively, 78.5% of AMC Networks shares are owned by institutional investors. 42.1% of Sinclair shares are owned by company insiders. Comparatively, 16.1% of AMC Networks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Sinclair and AMC Networks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sinclair	$3.17 billion	0.32	-$112.00 million	$0.75	18.41
AMC Networks	$2.31 billion	0.22	$89.40 million	($0.82)	-15.22

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sinclair	1.60%	-16.09%	-0.95%
AMC Networks	-0.88%	3.76%	0.96%

Summary

Sinclair beats AMC Networks on 9 of the 15 factors compared between the two stocks.

About Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.

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.