AMC vs. Cinemark: Which Theater Stock Is the Better Buy Now?

The movie theater industry is showing signs of resilience as audiences return to the big screen and studios deliver a stronger lineup of major releases. Against this backdrop, AMC Entertainment Holdings, Inc. AMC and Cinemark Holdings, Inc. CNK are competing to capture improving box-office demand while navigating high operating costs and evolving consumer preferences.

Both stocks offer exposure to a potential recovery in theatrical entertainment, but differences in financial strength, growth prospects and valuation could make one a more attractive investment than the other.

The Case for AMC

AMC Entertainment delivered a record-breaking second quarter, with revenues climbing 14.2% year over year to $1.6 billion and adjusted EBITDA surging 70% to $321.4 million. Attendance rose 13.5% to more than 71 million guests, while U.S. admissions revenues increased 11.4%, ahead of domestic box-office growth. The strong performance shows that AMC is benefiting not only from a healthier movie slate but also from improved execution and higher spending per customer.

Another positive is AMC's ability to translate revenue growth into stronger profitability and cash generation. Adjusted EBITDA margin expanded to 20.1% from 13.6% a year ago, supported by cost controls and operating leverage. Food, beverage and merchandise revenues increased 15.3%, while total revenue per patron reached record levels in both its U.S. and international businesses. AMC also generated $190.1 million in free cash flow during the quarter, highlighting the improving economics of its operations.

It also has several avenues to sustain growth as the theatrical market improves. The company expects 2026 to be its strongest post-pandemic year for the domestic and global box office, with a strong film lineup ahead. Its premium-format footprint is a major advantage, with IMAX, Dolby and other enhanced screens commanding higher prices and generating a disproportionate share of ticket revenues. Meanwhile, AMC's loyalty programs, including more than 1.1 million A-List members, provide a recurring customer base and help drive theater visits.

The biggest concern remains AMC's balance sheet. Although the company has reduced debt substantially and pushed significant maturities beyond 2029, management said leverage is still above its long-term target of around 3x, with the current level below 6.5x. AMC also raised capital through equity offerings during the quarter, strengthening liquidity but carrying the risk of shareholder dilution. The company still needs sustained box-office growth and further debt reduction to improve its financial position fully.

The Case for CNK

Cinemark delivered a record second quarter, with worldwide revenues surpassing $1 billion for the first time. Adjusted EBITDA reached an all-time high of $294 million, while the 27.1% margin was near the company's historical peak. Strong admissions, concession sales, premium-format performance and loyalty activity helped drive the results, showing that Cinemark is effectively converting stronger box-office trends into improved profitability.

Cinemark also has several growth levers beyond traditional ticket sales. Management sees further room to expand premium offerings such as XD, IMAX, ScreenX and D-BOX, which can support higher per-patron spending. The company added 112 D-BOX auditoriums, 12 ScreenX screens, seven XDs and two IMAX screens during the first half of 2026, while management said additional opportunities remain. Its international business is another potential contributor, with market-share gains, higher ticket prices and concession spending supporting record adjusted EBITDA and margins in Latin America.

The company is also benefiting from changing moviegoing habits, particularly among younger audiences. Cinemark said movie frequency among consumers under 25 was up roughly 20% year over year, while creator-led, anime, foreign and other nontraditional films are bringing new audiences into theaters. Its marketing efforts increasingly use social, digital and influencer channels to reach these moviegoers. In addition, Cinemark's merchandise business posted record quarterly sales of $25 million, providing another avenue to lift per-capita revenues and deepen engagement with major film releases.

A key risk is that Cinemark's strong performance remains closely tied to the quality and timing of movie releases. Management noted that periods of concentrated film launches can create capacity constraints, while the eventual performance of individual movies remains difficult to predict. In addition, rising electricity costs, particularly in markets such as Texas, are expected to pressure expenses in the second half of 2026. These factors could limit margin expansion if box-office momentum weakens or operating costs rise faster than revenues.

How Does the Zacks Consensus Estimate Compare for AMC & CNK?

The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS implies year-over-year growth of 13.3% and 77.1%, respectively. In the past 30 days, loss estimates for 2026 have widened but have narrowed for 2027.

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The Zacks Consensus Estimate for Cinemark's 2026 sales and EPS indicates a year-over-year increase of 14.1% and 126.9%, respectively. Earnings estimates for 2026 and 2027 have witnessed upward revisions in the past 30 days.

Image Source: Zacks Investment Research

Price Performance & Valuation

AMC stock has surged 119.8% in the past six months, against the S&P 500’s 10.2% decrease. Conversely, CNK’s shares have gained 40.7% in the same time frame.

Price Performance

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AMC is trading at a forward 12-month price-to-sales ratio of 0.41X, above its median of 0.24X over the past year. CNK's forward sales multiple is 1.17X, above its median of 0.93X over the same time frame.

P/S (F12M)

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Wrapping Up

Cinemark appears slightly better positioned than AMC at this stage. CNK’s advantage stems from its stronger profitability profile, improving earnings outlook and upward estimate revisions, while premium formats, growing engagement among younger audiences and expanding merchandise sales provide additional growth avenues.

AMC has delivered impressive operating growth and stronger stock performance, but its elevated financial leverage and reliance on equity raises remain notable concerns. Although AMC offers a lower sales multiple, CNK presents a more balanced combination of financial strength, earnings momentum and growth prospects. Overall, CNK has a slight edge over AMC at present. Both AMC and CNK carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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