Madison Square Garden Entertainment Corp. (MSGE) vs Sphere Entertainment Co. (SPHR)

Madison Square Garden Entertainment Corp. and Sphere Entertainment Co. are both Entertainment companies. Sphere Entertainment Co. is the larger, with a market value of $5.0B against $3.8B — 1.3× the size. Sphere Entertainment Co. has negative trailing earnings, so its P/E is not meaningful; Madison Square Garden Entertainment Corp. trades at 56.5×. Sphere Entertainment Co. grew revenue faster over the last twelve months: 27.5% against 12.5%. Madison Square Garden Entertainment Corp. has the higher net margin (6.24% vs −5.66%) and the higher return on invested capital (27.4% vs −3.93%). Across the 21 metrics below, Madison Square Garden Entertainment Corp. leads on 15 and Sphere Entertainment Co. on 6.

Valuation

Metric MSGE SPHR Entertainment median
P/E 56.49 n/m 22.03
P/S 3.54 3.76 1.47
P/B 81.99 2.29 2.00
Price to free cash flow 11.62 14.21 16.60
EV/EBITDA 20.19 23.55 9.65
EV/Sales 3.80 3.93 1.76
Earnings yield 1.77% (1.62%) (0.67%)
Free cash flow yield 8.61% 7.04% 3.26%

Profitability

Metric MSGE SPHR Entertainment median
Gross margin 45.11% 54.23% 45.02%
Operating margin 13.34% (11.41%) 2.30%
Net margin 6.24% (5.66%) 0.00%
Free cash flow margin 30.46% 26.46% 1.56%
Return on equity 407.54% (3.38%) 0.00%
Return on assets 3.67% (1.87%) 0.00%
Return on invested capital 27.44% (3.93%) 0.00%

Growth

Metric MSGE SPHR Entertainment median
Revenue growth (TTM) 12.52% 27.46% 5.07%
EPS growth (last fiscal year) 79.22% 113.02% —
Revenue growth, 5-year CAGR 66.94% (3.21%) 10.25%
Net income growth, 5-year CAGR 0.00% (28.74%) 0.00%

Health

Metric MSGE SPHR Entertainment median
Debt to equity 12.47 0.35 0.46
Current ratio 0.70 1.22 0.86
Net debt to EBITDA 1.39 2.25 0.72

Dividend

Metric MSGE SPHR Entertainment median
Dividend yield — — 1.16%
Payout ratio — 0.00 0.00

Size

Metric MSGE SPHR Entertainment median
Market cap 3.75b 4.97b 1.87b

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