Despite the rising popularity of various over the top (OTT) platforms over the past year, the reopening of movie theaters and other location-based entertainment operations is expected to help AMC Entertainment (NYSE:AMC) and Lions Gate (LGF.A) recover significantly this year. But let’s find out which of these stocks is a better buy now.AMC Entertainment Holdings, Inc. (AMC) is a theatrical exhibition company that operates globally. It licenses first-run films from distributors owned by film production companies and from independent distributors on a film-by-film and theatre-by-theater basis. It also offers food and beverages. .
Lions Gate Entertainment Corp. (LGF.A) engages in motion picture production and distribution, television programming and syndication, home entertainment, interactive ventures and games, and location-based entertainment operations internationally. The company operates through three segments—Motion Picture, Television Production, and Media Networks. The company releases in-house motion pictures theatrically, as well as films acquired from third parties.
As the U.S. economy experiences a fast-paced recovery, entertainment companies are likely to generate increasing foot traffic. So, both AMC and LGF.A’s financials are expected to recover in the coming quarters.