Comparing AMC Entertainment (NYSE:AMC) and Target Hospitality (NASDAQ:TH)

Target Hospitality (NASDAQ:TH) and AMC Entertainment (NYSE:AMC) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are owned by institutional investors. 68.0% of Target Hospitality shares are owned by company insiders. Comparatively, 0.3% of AMC Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Target Hospitality and AMC Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	1	1	2	1	2.60
AMC Entertainment	2	5	1	0	1.88

Target Hospitality presently has a consensus price target of $13.00, suggesting a potential upside of 79.06%. AMC Entertainment has a consensus price target of $3.33, suggesting a potential upside of 17.70%. Given Target Hospitality’s stronger consensus rating and higher probable upside, equities analysts plainly believe Target Hospitality is more favorable than AMC Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	3.58%	3.26%	2.13%
AMC Entertainment	-7.39%	N/A	-4.07%

Valuation and Earnings

This table compares Target Hospitality and AMC Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target Hospitality	$386.27 million	1.88	$71.26 million	$0.10	72.60
AMC Entertainment	$4.64 billion	0.31	-$352.60 million	($0.89)	-3.17

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

Risk and Volatility

Target Hospitality has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Summary

Target Hospitality beats AMC Entertainment on 14 of the 15 factors compared between the two stocks.

About Target Hospitality

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.

About AMC Entertainment

AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. It owns, operates, or has interests in theatres in the United States and Europe. The company was founded in 1920 and is headquartered in Leawood, Kansas.