Sphere Entertainment (NYSE:SPHR – Get Free Report) and NetEase (NASDAQ:NTES – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Valuation & Earnings
This table compares Sphere Entertainment and NetEase”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sphere Entertainment | $1.22 billion | 5.18 | $33.40 million | ($2.68) | -65.64 |
| NetEase | $16.11 billion | 4.88 | $4.83 billion | $7.53 | 16.29 |
Analyst Ratings
This is a breakdown of recent recommendations for Sphere Entertainment and NetEase, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sphere Entertainment | 0 | 2 | 11 | 0 | 2.85 |
| NetEase | 0 | 3 | 7 | 0 | 2.70 |
Sphere Entertainment currently has a consensus target price of $163.38, indicating a potential downside of 7.12%. NetEase has a consensus target price of $158.38, indicating a potential upside of 29.13%. Given NetEase’s higher probable upside, analysts clearly believe NetEase is more favorable than Sphere Entertainment.
Profitability
This table compares Sphere Entertainment and NetEase’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sphere Entertainment | -6.19% | -1.38% | -0.74% |
| NetEase | 29.85% | 21.04% | 15.59% |
Insider and Institutional Ownership
92.0% of Sphere Entertainment shares are owned by institutional investors. Comparatively, 11.1% of NetEase shares are owned by institutional investors. 22.1% of Sphere Entertainment shares are owned by company insiders. Comparatively, 54.7% of NetEase shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Sphere Entertainment has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Summary
NetEase beats Sphere Entertainment on 9 of the 14 factors compared between the two stocks.
About Sphere Entertainment
Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates entertainment dining and nightlife venues markets under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.
About NetEase
NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company's products and services include Youdao Dictionary, an online knowledge tool; Youdao Translation, a tool specifically designed to support translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids' Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, Youdao Listening Pod, Youdao Smart Light, Youdao Pocket Translator, and Youdao Super Dictionary; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company's OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services also include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver information such as news, sports events, technology, fashion trends, and online entertainment; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.
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