AMC Entertainment (NYSE:AMC – Get Free Report) and DoubleDown Interactive (NASDAQ:DDI – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Analyst Recommendations
This is a summary of current recommendations for AMC Entertainment and DoubleDown Interactive, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AMC Entertainment | 2 | 4 | 3 | 1 | 2.30 |
| DoubleDown Interactive | 0 | 3 | 2 | 0 | 2.40 |
AMC Entertainment currently has a consensus price target of $2.53, suggesting a potential downside of 5.47%. DoubleDown Interactive has a consensus price target of $18.33, suggesting a potential upside of 42.98%. Given DoubleDown Interactive’s stronger consensus rating and higher probable upside, analysts plainly believe DoubleDown Interactive is more favorable than AMC Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| AMC Entertainment | -10.59% | N/A | -3.71% |
| DoubleDown Interactive | 32.91% | 12.93% | 11.81% |
Institutional and Insider Ownership
28.8% of AMC Entertainment shares are owned by institutional investors. 0.6% of AMC Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares AMC Entertainment and DoubleDown Interactive”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AMC Entertainment | $4.85 billion | 0.49 | -$632.40 million | ($1.07) | -2.50 |
| DoubleDown Interactive | $359.94 million | 1.77 | $102.50 million | $2.52 | 5.09 |
DoubleDown Interactive has lower revenue, but higher earnings than AMC Entertainment. AMC Entertainment is trading at a lower price-to-earnings ratio than DoubleDown Interactive, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
AMC Entertainment has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500. Comparatively, DoubleDown Interactive has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.
Summary
DoubleDown Interactive beats AMC Entertainment on 9 of the 15 factors compared between the two stocks.
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.
About DoubleDown Interactive
DoubleDown Interactive Co., Ltd. engages in the development and publishing of casual games and mobile applications in South Korea. It publishes digital gaming content on mobile and web platforms. The company offers DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox, and cash me out games, as well as sells in-game virtual chips. Its games are primarily distributed, marketed, and promoted through third party platform providers. The company was formerly known as The8Games Co., Ltd. and changed its name to DoubleDown Interactive Co., Ltd. in December 2019. The company was incorporated in 2008 and is headquartered in Seoul, South Korea. DoubleDown Interactive Co., Ltd. is a subsidiary of DoubleU Games Co., Ltd.
Receive News & Ratings for AMC Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AMC Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
