AMC Entertainment Holdings, Inc. (AMC Quick QuoteAMC - Free Report) and IMAX Corporation (IMAX Quick QuoteIMAX - Free Report) are both benefiting from improving box-office trends, an encouraging film slate and strong demand for premium viewing experiences. AMC’s latest results highlight an operating recovery supported by attendance gains, higher spending per guest, cost discipline and debt-reduction efforts. IMAX, meanwhile, is building on its premium cinema appeal through filmmaker partnerships, global network expansion and a low-leverage balance sheet.

For investors evaluating theatrical entertainment exposure as the recovery progresses, which movie theater stock looks more promising now? Let’s take a closer look.

AMC: Premium Growth Meets Financial Progress

AMC’s market-share gains and higher spending per guest demonstrate progress in its operating recovery. Cost discipline is helping the company convert box-office growth into stronger profitability, while targeted theater investments support further improvements in productivity.

Premium auditorium expansion remains an important component of AMC’s growth strategy. AMC and ODEON operated approximately 750 premium or enhanced auditoriums, including IMAX, Dolby Cinema and XL screens. Management identified an opportunity to add 100-250 premium and extra-large-format auditoriums over the next two to four years, largely through third-party capital. The company is expanding lower-cost Club Rocker seating at high-performing theaters, offering greater comfort with less seating loss than full recliners. Continued portfolio optimization and targeted upgrades could help improve productivity while maintaining disciplined capital spending.

AMC’s loyalty and subscription programs provide a substantial base for targeted marketing and recurring customer engagement. More than 40 million U.S. households have participated in AMC Stubs, whose members represented slightly more than half of domestic attendance in the second quarter. A-List membership exceeded 1.1 million, with subscribers accounting for approximately 20% of U.S. patronage. Customer viewing histories help AMC tailor promotions, while subscription benefits encourage visits to films beyond major blockbusters and create additional food and beverage sales opportunities. Discounted Tuesdays and Wednesdays also broaden the company’s appeal to value-conscious guests.

AMC’s refinancing and debt-reduction initiatives are improving its financial flexibility. The company refinanced $400 million of debt due in 2027, extending the maturity by four years, and eliminated approximately $155.8 million of exchangeable debt through conversion into equity. Following the announced refinancing and repayment actions, AMC did not anticipate material principal payments before 2029 and expected annual cash interest savings of approximately $16 million. Separately, improved leverage was expected to lower interest rates on about 75% of its debt, reducing annual interest expense by about $51 million. These savings support progress toward sustained positive free cash flow.

IMAX: Technology and Expansion Fuel Growth

IMAX’s growth strategy centers on proprietary cinema technology, filmmaker partnerships and global network expansion. Its business model generates revenues from content, system sales, maintenance and revenue-sharing arrangements, providing multiple avenues for growth. Investment in differentiated viewing experiences strengthens its appeal to audiences and exhibitors while reinforcing its competitive position in premium theatrical entertainment.

IMAX’s enhanced film cameras and sound-control technology deepen its role in filmmaking and strengthen its premium differentiation. These advances reinforce relationships with leading filmmakers. Management identified at least four titles, including new releases and rereleases, expected to receive IMAX 70-millimeter presentations in 2027, supporting the release pipeline for its premium film format.

Exhibitor demand supports further network expansion. IMAX installed 38 systems in the second quarter, compared with 36 a year earlier, marking its highest second-quarter installation count in a decade. Installations comprised 17 new locations and 21 upgrades. System signings increased approximately 29% year over year to 36, with approximately 80% covering new locations. Agreements across Australia, New Zealand, the United States, India, Turkey and Vietnam demonstrate geographic breadth and opportunities to expand in underpenetrated markets.

Content partnerships further support the growth outlook. A pipeline spanning Hollywood blockbusters, local-language productions and alternative content broadens programming opportunities across the network. IMAX expects a record $1.4 billion in global box office for full-year 2026. Merchandising initiatives offer an additional opportunity to monetize brand loyalty and strengthen direct consumer relationships.

IMAX’s revenue growth and cost discipline are supporting stronger profitability, while higher net income and working-capital improvements have strengthened operating cash flow. Second-quarter adjusted EBITDA margin increased 400 basis points year over year to 46.6%, while first-half operating cash flow rose 20% to $36 million. With net leverage of 0.7 times at June-end, the company likely retains financial flexibility to fund technology and network expansion.

How Do Earnings Estimates Compare for AMC & IMAX?

The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales suggests a year-over-year increase of 18.8%, while its loss per share is projected to narrow 91.7%. In the past 60 days, loss per share estimates for 2026 have improved 63.6%.

AMC Earnings Estimate Trend

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The Zacks Consensus Estimate for IMAX’s 2026 sales and EPS suggests year-over-year increases of 17.4% and 53.1%, respectively. In the past 60 days, earnings estimates for 2026 have increased 20%.

IMAX Earnings Estimate Trend

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AMC vs. IMAX: Price Performance and Valuation

AMC stock has gained 8.7% in the past three months, outperforming the industry’s fall of 6.6%. and the S&P 500’s growth of 5%. Meanwhile, IMAX’s shares have risen 7.9% in the same time frame.

AMC & IMAX Three-Month Price Performance

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AMC is trading at a forward 12-month price-to-earnings (P/E) multiple of 72.12, well above the industry average of 15.92. IMAX’s forward 12-month P/E multiple stands at 28.96.

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AMC’s higher multiple leaves its valuation more dependent on sustained earnings improvement from attendance growth, cost discipline and lower interest expense. IMAX’s comparatively lower multiple offers a more compelling valuation proposition, supported by its differentiated technology, global expansion opportunities and low leverage.

AMC or IMAX: Which Stock Is the Better Buy Now?

MAX stands out as the stronger investment choice, supported by proprietary technology, global network expansion, low leverage and a lower forward P/E than AMC. Although AMC’s operating recovery and improving earnings outlook strengthen its appeal, its higher valuation requires more sustained earnings execution. For investors seeking exposure to premium cinema growth, IMAX offers the more attractive overall proposition, reinforced by its Zacks Rank #1 (Strong Buy), compared with AMC’s Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.