TKO Group (TKO) vs. Its Peers Financial Analysis

TKO Group (NYSE:TKO) is one of 184 publicly-traded companies in the “Entertainment” industry, but how does it weigh in compared to its peers? We will compare TKO Group to related businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares TKO Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TKO Group	5.19%	3.35%	1.80%
TKO Group Competitors	11.06%	-24.56%	-2.20%

Analyst Ratings

This is a summary of current recommendations and price targets for TKO Group and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TKO Group	0	4	14	1	2.84
TKO Group Competitors	1883	4516	9639	257	2.51

TKO Group presently has a consensus target price of $229.29, indicating a potential upside of 15.08%. As a group, “Entertainment” companies have a potential upside of 15.61%. Given TKO Group’s peers higher possible upside, analysts plainly believe TKO Group has less favorable growth aspects than its peers.

Dividends

TKO Group pays an annual dividend of $3.16 per share and has a dividend yield of 1.6%. TKO Group pays out 85.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Entertainment” companies pay a dividend yield of 15.9% and pay out 78.6% of their earnings in the form of a dividend. TKO Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares TKO Group and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TKO Group	$4.74 billion	$195.40 million	53.70
TKO Group Competitors	$10.37 billion	$73.91 million	-1.15

TKO Group’s peers have higher revenue, but lower earnings than TKO Group. TKO Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

TKO Group has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, TKO Group’s peers have a beta of 1.00, indicating that their average share price is 0% less volatile than the S&P 500.

Insider and Institutional Ownership

89.8% of TKO Group shares are held by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are held by institutional investors. 64.3% of TKO Group shares are held by insiders. Comparatively, 23.6% of shares of all “Entertainment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

TKO Group beats its peers on 9 of the 15 factors compared.

TKO Group Company Profile

TKO Group Holdings, Inc. is a global sports and entertainment company whose principal properties are UFC, the mixed martial arts organization, and WWE, the professional wrestling and sports entertainment company. TKO was formed in 2023 when Endeavor combined UFC and WWE under a single publicly traded company. The company generates business through live events and ticket sales, media and streaming rights, sponsorships, licensing, and consumer products. UFC and WWE produce programming and events for audiences worldwide, alongside related digital content and merchandise.