Critical Analysis: FOX (NASDAQ:FOXA) vs. AMC Networks (NASDAQ:AMCX)

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

Volatility & Risk

FOX has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FOX	$17.13 billion	1.64	$1.69 billion	$4.71	14.18
AMC Networks	$2.25 billion	0.16	$89.40 million	($0.82)	-10.34

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

Analyst Ratings

This is a summary of current ratings and target prices for FOX and AMC Networks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FOX	0	11	13	2	2.65
AMC Networks	3	2	0	0	1.40

FOX presently has a consensus price target of $79.16, indicating a potential upside of 18.56%. AMC Networks has a consensus price target of $10.00, indicating a potential upside of 17.99%. Given FOX’s stronger consensus rating and higher probable upside, equities analysts clearly believe FOX is more favorable than AMC Networks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FOX	11.30%	23.96%	12.52%
AMC Networks	-0.88%	3.76%	0.96%

Insider and Institutional Ownership

52.5% of FOX shares are held by institutional investors. Comparatively, 78.5% of AMC Networks shares are held by institutional investors. 20.9% of FOX shares are held by insiders. Comparatively, 16.1% of AMC Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

FOX beats AMC Networks on 13 of the 15 factors compared between the two stocks.

About FOX

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.

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.