Madison Square Garden Sports (NYSE:MSGS) and DraftKings (NASDAQ:DKNG) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Madison Square Garden Sports and DraftKings, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Madison Square Garden Sports | 0 | 1 | 9 | 0 | 2.90 |
DraftKings | 1 | 6 | 20 | 0 | 2.70 |
Madison Square Garden Sports currently has a consensus price target of $205.8889, indicating a potential upside of 13.11%. DraftKings has a consensus price target of $66.4815, indicating a potential upside of 14.56%. Given DraftKings' higher possible upside, analysts clearly believe DraftKings is more favorable than Madison Square Garden Sports.
Profitability
This table compares Madison Square Garden Sports and DraftKings' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Madison Square Garden Sports | N/A | -2.36% | -1.05% |
DraftKings | N/A | N/A | N/A |
Earnings & Valuation
This table compares Madison Square Garden Sports and DraftKings' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Madison Square Garden Sports | $603.32 million | 7.28 | $-182,390,000.00 | ($4.86) | -37.45 |
DraftKings | N/A | N/A | $2.31 million | N/A | N/A |
DraftKings has lower revenue, but higher earnings than Madison Square Garden Sports.
Volatility & Risk
Madison Square Garden Sports has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, DraftKings has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500.
Institutional & Insider Ownership
70.3% of Madison Square Garden Sports shares are owned by institutional investors. Comparatively, 46.5% of DraftKings shares are owned by institutional investors. 21.8% of Madison Square Garden Sports shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
DraftKings beats Madison Square Garden Sports on 6 of the 10 factors compared between the two stocks.