MSG Networks (NYSE: MSGN) and The Madison Square Garden (NYSE:MSG) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitabiliy and institutional ownership.
Volatility & Risk
MSG Networks has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, The Madison Square Garden has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
Insider & Institutional Ownership
78.6% of MSG Networks shares are owned by institutional investors. Comparatively, 84.8% of The Madison Square Garden shares are owned by institutional investors. 18.1% of MSG Networks shares are owned by company insiders. Comparatively, 18.6% of The Madison Square Garden shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares MSG Networks and The Madison Square Garden’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| MSG Networks | $673.00 million | 1.96 | $323.63 million | $2.33 | 9.18 |
| The Madison Square Garden | $1.23 billion | 3.33 | $97.01 million | ($1.93) | -111.55 |
MSG Networks has higher revenue, but lower earnings than The Madison Square Garden. The Madison Square Garden is trading at a lower price-to-earnings ratio than MSG Networks, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for MSG Networks and The Madison Square Garden, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MSG Networks | 1 | 4 | 4 | 0 | 2.33 |
| The Madison Square Garden | 1 | 3 | 7 | 0 | 2.55 |
MSG Networks presently has a consensus price target of $24.00, suggesting a potential upside of 12.15%. The Madison Square Garden has a consensus price target of $203.00, suggesting a potential downside of 5.71%. Given MSG Networks’ higher possible upside, analysts plainly believe MSG Networks is more favorable than The Madison Square Garden.
Profitability
This table compares MSG Networks and The Madison Square Garden’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MSG Networks | 26.21% | -16.20% | 20.43% |
| The Madison Square Garden | -3.81% | -1.57% | -1.12% |
Summary
The Madison Square Garden beats MSG Networks on 8 of the 13 factors compared between the two stocks.
MSG Networks Company Profile
MSG Networks Inc., formerly The Madison Square Garden Company, is engaged in sports production, and content development and distribution. The Company owns and operates two regional sports and entertainment networks, MSG Network (MSGN) and MSG+, collectively MSG Networks. Its networks are distributed throughout its territory, which includes all of New York State and significant portions of New Jersey and Connecticut, as well as parts of Pennsylvania. The Company delivers live games of the New York Knicks (the Knicks) of the National Basketball Association (NBA); the New York Rangers (the Rangers), New York Islanders (the Islanders), New Jersey Devils (the Devils) and Buffalo Sabres (the Sabres) of the National Hockey League (NHL); the New York Liberty (the Liberty) of the Women’s National Basketball Association; the New York Red Bulls (the Red Bulls) of Major League Soccer (MLS), and the Westchester Knicks of the National Basketball Association Developmental League.
The Madison Square Garden Company Profile
The Madison Square Garden Company is a holding company, which is engaged in live experiences consisting of celebrated venues, sports teams, and entertainment productions. The Company operates in two segments, which include MSG Entertainment and MSG Sports. The MSG Sports segment includes the Company’s professional sports franchises, which include the New York Knicks (the Knicks) of the National Basketball Association (the NBA), the New York Rangers (the Rangers) of the National Hockey League (the NHL), the New York Liberty (the Liberty) of the Women’s National Basketball Association (the WNBA), the Hartford Wolf Pack of the American Hockey League (the AHL), which is the primary player development team for the Rangers, and the Westchester Knicks, an NBA Development League team. The MSG Entertainment segment includes the Company’s live entertainment events. The Company presents or hosts live entertainment events, including concerts, family shows, performing arts and special events.
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