SeaWorld Entertainment (NYSE:SEAS) and Madison Square Garden Sports (NYSE:MSGS) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Risk and Volatility
SeaWorld Entertainment has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500. Comparatively, Madison Square Garden Sports has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Valuation and Earnings
This table compares SeaWorld Entertainment and Madison Square Garden Sports' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SeaWorld Entertainment | $1.40 billion | 2.80 | $89.48 million | $1.58 | 31.61 |
Madison Square Garden Sports | $603.32 million | 7.35 | $-182,390,000.00 | ($4.86) | -37.85 |
SeaWorld Entertainment has higher revenue and earnings than Madison Square Garden Sports. Madison Square Garden Sports is trading at a lower price-to-earnings ratio than SeaWorld Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for SeaWorld Entertainment and Madison Square Garden Sports, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SeaWorld Entertainment | 0 | 4 | 7 | 0 | 2.64 |
Madison Square Garden Sports | 0 | 1 | 9 | 0 | 2.90 |
SeaWorld Entertainment currently has a consensus target price of $40.2143, suggesting a potential downside of 19.47%. Madison Square Garden Sports has a consensus target price of $205.8889, suggesting a potential upside of 11.94%. Given Madison Square Garden Sports' stronger consensus rating and higher probable upside, analysts clearly believe Madison Square Garden Sports is more favorable than SeaWorld Entertainment.
Profitability
This table compares SeaWorld Entertainment and Madison Square Garden Sports' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
SeaWorld Entertainment | -50.54% | -352.53% | -10.24% |
Madison Square Garden Sports | N/A | -2.36% | -1.05% |
Institutional and Insider Ownership
97.8% of SeaWorld Entertainment shares are held by institutional investors. Comparatively, 70.3% of Madison Square Garden Sports shares are held by institutional investors. 0.8% of SeaWorld Entertainment shares are held by insiders. Comparatively, 21.8% of Madison Square Garden Sports shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Madison Square Garden Sports beats SeaWorld Entertainment on 8 of the 14 factors compared between the two stocks.