Broadcasting stocks are tempting, because it’s a relatively high-margin business with consistent source of revenues. The value of content is rising with the advent of so many streaming services who are competing for eyeballs.

This is likely to continue over the next few years, until the inevitable beginning of consolidation which should initiate tougher conditions for broadcast stocks.

Below, we delve into two of the more intriguing broadcasting stocks. Let’s determine which of these two stocks is the better buy: fuboTV (FUBO) and AMC Networks (AMCX).

fuboTV (FUBO)

If you want to get a piece of the broadcasting segment and don’t mind some volatility, consider FUBO. Though FUBO has a beta of 2.82, meaning it is likely to prove volatile, the company’s streaming service is a legitimate threat to fellow streaming powerhouses as well as cable TV providers. FUBO provides live TV streaming service including news and entertainment.

The analysts are bearish on FUBO. If FUBO hits the analysts’ average target price of $25.33, it will have declined by more than 14%. The lowest target price for the stock is $20 while the highest target price is $30.

FUBO is a POWR Ratings disappointment. The stock has a F grade in the POWR Ratings meaning it is a Strong Sell. FUBO has Fs in the Quality and Stability components of the POWR Ratings along with Ds in the Sentiment and Value components. If you are curious as to how FUBO fares in the Momentum and Growth components, you can find out by clicking here.

FUBO is ranked dead last of 14 publicly traded companies in the Entertainment – Sports & Theme Parks space. Click here to find out more about this industry.

If ad spending on connected TV commercials grows by the 25% anticipated in the year ahead, it will have eclipsed the aggregate growth in spending in the prior year by 6%. The expected spike in connected TV ads certainly bodes well for the likes of FUBO. The company’s first quarter ad revenue of nearly $13 million jumped more than 200% from the same quarter in the prior year.

AMC Networks (AMCX)

AMCX is an entertainment business that specializes in programming and film content. AMCX owns several cable TV stations including AMC, Sundance, IFC and more. Both AMCX and FUBO are based in New York, New York.

AMCX has a forward P/E ratio of 7.76. This indicates the stock is undervalued at its current price of $63. AMCX has a reasonable beta of 1.26, meaning it will likely hold steady should the market significantly fluctuate.

AMCX is a POWR Ratings success with a B overall rating indicating the stock is a Buy. AMCX has an A Quality component grade and Bs in the Momentum and Value components. AMCX has a C grade in the Growth component of the POWR Ratings. If you are curious as to how AMCX grades out in the Stability and Sentiment components of the POWR Ratings, you can find out by clicking here.

Of the 18 stocks in the Entertainment – Media Producers space, AMCX is ranked third. Investors can learn more about the stocks in this segment by clicking here.

Which is the Better Buy?

Compare the POWR Ratings of these stocks and you will find AMCX has the better overall grade and also superior individual component grades. FUBO is ranked last in its segment while AMCX slots in at number three out of nearly 20 stocks in its category. Add in the fact that the top analysts are bearish on FUBO and favoring AMCX becomes even easier. Though AMCX is not a streaming specialist, savvy investors rightfully question whether streaming companies such as FUBO will cannibalize one another, ultimately leading to an eventual reduction in players or possibly even some mergers. Scoop up AMCX, monitor the stock moving forward and alter your position as appropriate.