AMC is highly levered and has lower margins, which makes it more risky, but it's also embarking on a more ambitious subscription program. Should A-List work out, AMC's stock could go much higher. However, Cinemark is definitely the safer play, due to its structurally higher margins and lower debt load.
Full Answer
Is Cinemark a better dividend growth stock than AMC Entertainment?
The market clearly likes Cinemark's better margins and balance sheet, as it trades at a significantly higher enterprise value to EBITDA than AMC. That lower valuation has also pushed AMC's dividend up to 6%, whereas Cinemark's dividend yield is only 3.3%.
Should you buy AMC Theatres Inc (AMC) or Cinemark Inc?
Should A-List work out, AMC's stock could go much higher. However, Cinemark is definitely the safer play, due to its structurally higher margins and lower debt load. Choosing between the two will depend on your view of the resiliency of the movie industry, as well as your appetite for risk.
How does CNK stock compare to AMC Theatres?
In 2019, CNK's average ticket price was $6.81 versus $9.47 for AMC, suggesting that CNK may have more room to raise prices. Yet CNK stock remains much lower than pre-pandemic levels while AMC is somehow higher than pre-pandemic levels.
What's the difference between Cinemark and AMC Stubs?
As of its recent earnings call, Cinemark had attracted 660,000 members to Cinemark Movie Club, while AMC just passed 800,000 for AMC Stubs A-List. As you can see, AMC's subscription offers a lot more benefits.
Is Cinemark or AMC bigger?
AMC is the largest theater operator in the world, as it operates 950 theatres in 14 countries including 590 theatres in the United States.
Why is Cinemark stock up?
Cinemark Stock Rises as Revenue Gets Boost From Higher Admissions. Admission sales in the quarter total $235.8 million, above analysts' estimates of $231.7 million.
Is Cinemark or AMC better?
Results were generated by 161 employees and customers of AMC Theaters and 74 employees and customers of Cinemark USA. AMC Theaters's brand is ranked #683 in the list of Global Top 1000 Brands, as rated by customers of AMC Theaters....AMC Theaters vs Cinemark USA.69%Promoters21%Detractors1 more row
Is it smart to invest in Cinemark?
Looking at a five-year chart, we see that Cinemark is starting to stabilize, with a nice base formed above the $13.00 level. With more market volatility, we could potentially see a test of the $13-14 level in the shares, which would likely be a good buying opportunity for the long term.
Should I sell my Cinemark stock?
The consensus among Wall Street research analysts is that investors should "hold" Cinemark stock. A hold rating indicates that analysts believe investors should maintain any existing positions they have in CNK, but not buy additional shares or sell existing shares.
Is Cinemark a buy right now?
Cinemark Holdings stock has received a consensus rating of hold. The average rating score is and is based on 5 buy ratings, 10 hold ratings, and 2 sell ratings.
What is the difference between Cinemark and AMC?
In the United States, Cinemark has the No. 1 or 2 market share in 20 of the top 25 markets. Major Differences Between AMC, Cinemark: One major difference is the geographical makeup of AMC Entertainment versus Cinemark. Both companies have a large presence in the U.S., with AMC having 636 theaters and 8,094 screens.
What is the best movie theater stock?
Movie Theater Stocks With the Best PerformancePrice ($)Market Cap ($B)AMC Entertainment Holdings Inc. (AMC)23.3112.1IMAX Corp. (IMAX)18.491.1Cinemark Holdings Inc. (CNK)17.282.11 more row
Who is the biggest cinema chain?
AMCGlobal cinema chains#ChainSites1AMC1,0042Cineworld7933Cinemark5334Cinépolis3355 more rows
Will Cinemark stock go up?
The 12 analysts offering 12-month price forecasts for Cinemark Holdings Inc have a median target of 22.00, with a high estimate of 32.00 and a low estimate of 13.90. The median estimate represents a +28.35% increase from the last price of 17.14.
Is CNK overvalued?
Price to Book Ratio PB vs Industry: CNK is overvalued based on its Price-To-Book Ratio (7x) compared to the US Entertainment industry average (1.5x).
Is AMC Entertainment a good stock to buy right now?
AMC's Financials Are In Great Shape On a year-over-year basis, revenue increased by 620% in Q4. Drink and food revenue reached 87% of pre-pandemic levels, to an average of $6.38 per patron. That's quite a bit better than the $4.74 per person AMC made in the fourth quarter of 2019.
How many theaters does AMC have?
and the world, having acquired Carmike in 2016, along with European theater chains Odeon and Nordic shortly thereafter. AMC currently runs 636 theaters in the U.S. and 365 theaters across Europe, and recently inked an agreement with Saudi Arabia to begin opening theaters there.
Does AMC have lower margins?
AMC's program, however, has the chance to lower margins if subscribers use the program three or more times per month, though that is counteracted by patrons buying more food and bringing along other nonmembers. As the program ramped up last year, AMC's margins contracted.
Is Cinemark more profitable than AMC?
Cinemark is more profitable and less risky. One interesting thing to note is that even though AMC's average ticket price is $9.37 versus Cinemark's $7.98, Cinemark is structurally more profitable. This is because AMC's theaters tend to be in high-rent locations in big cities to a greater extent than Cinemark. Company.
Is streaming moviegoing going to end?
While some believe that the streaming revolution spells the end of moviegoing as we know it, 2018 was actually a record year for the domestic box office. Moviegoing attendance has very gradually declined over the past two decades, but theaters have regularly increased prices just above inflation, and have been able to increase revenue.
Is Cinemark or AMC risky?
The verdict. Choosing between AMC and Cinemark comes down to your risk tolerance. AMC is highly levered and has lower margins, which makes it more risky, but it's also embarking on a more ambitious subscription program. Should A-List work out, AMC's stock could go much higher.
Cinemark, AMC face similar circumstances
With second-place Regal Entertainment not trading on U.S. exchanges, the competitive battle of interest to stockholders is the competition between AMC, which operates 1,004 theaters worldwide, and Cinemark, a company running 523 theaters.
Why the variance in performances?
So what made retail investors bid up AMC stock but not Cinemark stock? It seems the determining factor comes down to online and social media attention. According to Google Trends, AMC has consistently attracted more interest since last fall.
Will Cinemark ever experience an AMC-like short squeeze?
Given its lack of attention, Cinemark investors should not expect a massive short squeeze. Indeed, considering the short interest percentage relative to outstanding shares, Cinemark stock looks like a short squeeze target comparable to AMC.
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Revenue and Attendance Versus The Industry
Revenue Affected by Loyalty Programs
- Another curious element is that AMC's revenue growth underperformed both Cinemark and even its own attendance figures, whereas Cinemark's revenue outstripped attendance. However, there is a very good reason for this: AMC's new A-List loyalty program, in its U.S. footprint, ramped up faster than expected in the second half of last year and in the first quarter. That, along with lowe…
Cinemark Is More Profitable and Less Risky
- One interesting thing to note is that even though AMC's average ticket price is $9.37 versus Cinemark's $7.98, Cinemark is structurally more profitable. This is because AMC's theaters tend to be in high-rent locations in big cities to a greater extent than Cinemark. Data source: Company filings. Not only is Cinemark more profitable, but its balance sheet is in much better shape. AMC'…
But AMC Is Dirt Cheap
- The market clearly likes Cinemark's better margins and balance sheet, as it trades at a significantly higher enterprise value to EBITDA than AMC. That lower valuation has also pushed AMC's dividend up to 6%, whereas Cinemark's dividend yield is only 3.3%. AMC EV to EBITDA (TTM). Data by YCharts.
The Verdict
- Choosing between AMC and Cinemark comes down to your risk tolerance. AMC is highly levered and has lower margins, which makes it more risky, but it's also embarking on a more ambitious subscription program. Should A-List work out, AMC's stock could go much higher. However, Cinemark is definitely the safer play, due to its structurally higher margin...