Madison Square Garden Entertainment Corp. (MSGE) vs MSG Knickerbockers Corp. (MSGK)

Madison Square Garden Entertainment Corp. and MSG Knickerbockers Corp. are both Entertainment companies. MSG Knickerbockers Corp. is the larger, with a market value of $7.6B against $3.8B — 2.0× the size. Madison Square Garden Entertainment Corp. trades at the lower P/E: 57.1× against 1,018×. Madison Square Garden Entertainment Corp. grew revenue faster over the last twelve months: 12.5% against 11.0%. Madison Square Garden Entertainment Corp. has the higher net margin (6.24% vs 0.67%) and the higher return on invested capital (27.4% vs 0.00%). Across the 20 metrics below, Madison Square Garden Entertainment Corp. leads on 18 and MSG Knickerbockers Corp. on 2.

Valuation

Metric MSGE MSGK Entertainment median
P/E 57.13 1,018.23 28.64
P/S 3.58 6.61 1.38
P/B 82.91 n/m 1.77
Price to free cash flow 11.75 124.46 17.74
EV/EBITDA 20.40 240.84 9.57
EV/Sales 3.84 6.69 1.76
Earnings yield 1.75% 0.10% (1.52%)
Free cash flow yield 8.51% 0.80% 3.70%

Profitability

Metric MSGE MSGK Entertainment median
Gross margin 45.11% 27.74% 45.11%
Operating margin 13.34% 2.50% 2.30%
Net margin 6.24% 0.67% 0.00%
Free cash flow margin 30.46% 5.31% 4.34%
Return on equity 407.54% (2.84%) 2.40%
Return on assets 3.67% 0.51% 0.00%
Return on invested capital 27.44% 0.00% 0.55%

Growth

Metric MSGE MSGK Entertainment median
Revenue growth (TTM) 12.52% 11.03% 6.81%
EPS growth (last fiscal year) 79.22% 134.41% 9.67%
Revenue growth, 5-year CAGR 66.94% 22.65% 10.07%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MSGE MSGK Entertainment median
Debt to equity 12.47 (0.98) 0.46
Current ratio 0.70 0.50 1.06
Net debt to EBITDA 1.39 2.93 0.97

Dividend

Metric MSGE MSGK Entertainment median
Dividend yield — — 1.21%
Payout ratio — — 0.20

Size

Metric MSGE MSGK Entertainment median
Market cap 3.77b 7.59b 3.25b

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