Madison Square Garden Entertainment (NYSE:MSGE – Get Free Report) and Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.
Institutional and Insider Ownership
96.9% of Madison Square Garden Entertainment shares are held by institutional investors. Comparatively, 8.4% of Liberty Media Corporation – Liberty Formula One Series A shares are held by institutional investors. 16.4% of Madison Square Garden Entertainment shares are held by insiders. Comparatively, 3.0% of Liberty Media Corporation – Liberty Formula One Series A shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Madison Square Garden Entertainment and Liberty Media Corporation – Liberty Formula One Series A”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Madison Square Garden Entertainment | $962.28 million | 2.60 | $37.43 million | $0.70 | 88.50 |
| Liberty Media Corporation – Liberty Formula One Series A | $3.32 billion | 6.01 | $195.04 million | $0.78 | 102.17 |
Liberty Media Corporation – Liberty Formula One Series A has higher revenue and earnings than Madison Square Garden Entertainment. Madison Square Garden Entertainment is trading at a lower price-to-earnings ratio than Liberty Media Corporation – Liberty Formula One Series A, 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 Madison Square Garden Entertainment and Liberty Media Corporation – Liberty Formula One Series A, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madison Square Garden Entertainment | 0 | 4 | 3 | 1 | 2.63 |
| Liberty Media Corporation – Liberty Formula One Series A | 1 | 2 | 3 | 1 | 2.57 |
Madison Square Garden Entertainment presently has a consensus target price of $54.00, indicating a potential downside of 12.83%. Liberty Media Corporation – Liberty Formula One Series A has a consensus target price of $103.00, indicating a potential upside of 29.25%. Given Liberty Media Corporation – Liberty Formula One Series A’s higher possible upside, analysts clearly believe Liberty Media Corporation – Liberty Formula One Series A is more favorable than Madison Square Garden Entertainment.
Profitability
This table compares Madison Square Garden Entertainment and Liberty Media Corporation – Liberty Formula One Series A’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Madison Square Garden Entertainment | 3.65% | -310.15% | 2.75% |
| Liberty Media Corporation – Liberty Formula One Series A | N/A | N/A | N/A |
Volatility & Risk
Madison Square Garden Entertainment has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Liberty Media Corporation – Liberty Formula One Series A has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
Summary
Liberty Media Corporation – Liberty Formula One Series A beats Madison Square Garden Entertainment on 8 of the 13 factors compared between the two stocks.
About Madison Square Garden Entertainment
Madison Square Garden Entertainment Corp. engages in the provision of entertainment services. Its portfolio of venues includes The Garden, Radio City Music Hall, the Beacon Theatre, The Theater at Madison Square, and The Chicago Theatre. The company was founded in 1879 and is headquartered in New York, NY.
About Liberty Media Corporation – Liberty Formula One Series A
Formula One Group, through its subsidiary Formula 1, engages in the motorsports business in the United States and internationally. The company holds commercial rights for the FIA Formula One world championship, approximately a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship. It is also involved in the operation of the Formula 1 Paddock Club hospitality program; and provision of freight, logistical, and travel related services for the teams and other third parties, as well as the F2 and F3 race series. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group operates as a subsidiary of Liberty Media Corporation.
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