Contrasting Phoenix New Media (NYSE:FENG) and AMC Networks (NASDAQ:AMCX)

Phoenix New Media (NYSE:FENG) and AMC Networks (NASDAQ:AMCX) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Phoenix New Media and AMC Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phoenix New Media	1	0	0	0	1.00
AMC Networks	4	3	0	0	1.43

AMC Networks has a consensus price target of $6.50, indicating a potential downside of 21.50%. Given AMC Networks’ stronger consensus rating and higher possible upside, analysts clearly believe AMC Networks is more favorable than Phoenix New Media.

Volatility & Risk

Phoenix New Media has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Profitability

This table compares Phoenix New Media and AMC Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phoenix New Media	-6.35%	-4.45%	-2.94%
AMC Networks	-6.03%	11.67%	2.62%

Institutional & Insider Ownership

6.3% of Phoenix New Media shares are held by institutional investors. Comparatively, 78.5% of AMC Networks shares are held by institutional investors. 10.9% of Phoenix New Media shares are held by insiders. Comparatively, 15.6% of AMC Networks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Phoenix New Media and AMC Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phoenix New Media	$761.38 million	0.03	-$7.45 million	($0.56)	-3.51
AMC Networks	$2.32 billion	0.16	-$226.55 million	($3.75)	-2.21

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

Summary

AMC Networks beats Phoenix New Media on 11 of the 13 factors compared between the two stocks.

About Phoenix New Media

Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.

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.