CNBC's Jim Cramer on Monday likened buying shares in Six Flags Entertainment to "throwing good money after bad."

The comments come in the wake of reports last week that Cedar Fair rejected a $4 billion bid from the rival amusement park. Cramer, who in August endorsed the former's stock for its lower price tag and higher dividend yield, doubled down on his thesis for Cedar Fair.

"If you already own Cedar Fair, I'd stick with it," the "Mad Money" host said. "If you don't own it yet, hey, I recommend putting a small position on here, maybe waiting for a pullback ... and, who knows, maybe one day a takeover bid."

Since Cramer's call nearly two months ago, shares of Cedar Fair are up nearly 10%. The stock rallied more than 2% after news broke Wednesday about the merger attempt but has fallen more than 6% since the cash-and-stock offer was turned down on Friday.

Six Flags' stock, however, is down nearly 15% since Cramer recommended Cedar Fair's equity in August.

The host noted that Six Flags now sports a lower share price and higher yield than its counterpart but stopped short of changing his perspective. He went on to highlight that Six Flags was willing to pay roughly $70 a share to acquire Cedar Fair, which trades below $60 apiece.

"Cedar Fair is a master limited partnership rather than an ordinary C-corp., which means they ... pay out the bulk of their earnings as dividends or distributions without getting hit with any corporate income tax. That's why it's so advantageous," he said. "If Six Flags really wants to buy Cedar Fair, they need to offer a much larger premium, and I don't think they can afford it."

With a takeover seemingly out of the picture, Cramer projected that Six Flags could rise above $50 from under $49 a share but cautioned it's a bet for traders to take. Cedar Fair is a better pick for investors, he added.

Both equities sell for 16 times 2020 earnings estimates. Six Flags has a 6.7% yield versus Cedar Fair's 6.4% yield.

"As an investor, I say stick with Cedar Fair," Cramer said. "All [the takeover bid] does is confirm what I originally thought about these two names. It's a not-so-tacit admission from Six Flags that Cedar Fair is an attractive asset. If they're willing to pay $70 a share, the stock must be a steal down here at $57."