MSG Knickerbockers Corp. (MSGK) vs Sphere Entertainment Co. (SPHR)

MSG Knickerbockers Corp. and Sphere Entertainment Co. are both Entertainment companies. MSG Knickerbockers Corp. is the larger, with a market value of $7.6B against $3.8B — 2.0× the size. Sphere Entertainment Co. has negative trailing earnings, so its P/E is not meaningful; MSG Knickerbockers Corp. trades at 1,018×. Sphere Entertainment Co. grew revenue faster over the last twelve months: 27.5% against 11.0%. MSG Knickerbockers Corp. has the higher net margin (0.67% vs −5.66%) and the higher return on invested capital (0.00% vs −3.93%). Across the 20 metrics below, MSG Knickerbockers Corp. leads on 10 and Sphere Entertainment Co. on 10.

Valuation

Metric MSGK SPHR Entertainment median
P/E 1,018.23 n/m 28.64
P/S 6.61 2.80 1.38
P/B n/m 1.70 1.77
Price to free cash flow 124.46 10.57 17.74
EV/EBITDA 240.84 17.79 9.57
EV/Sales 6.69 2.97 1.76
Earnings yield 0.10% (2.18%) (1.52%)
Free cash flow yield 0.80% 9.46% 3.70%

Profitability

Metric MSGK SPHR Entertainment median
Gross margin 27.74% 54.23% 45.11%
Operating margin 2.50% (11.41%) 2.30%
Net margin 0.67% (5.66%) 0.00%
Free cash flow margin 5.31% 26.46% 4.34%
Return on equity (2.84%) (3.38%) 2.40%
Return on assets 0.51% (1.87%) 0.00%
Return on invested capital 0.00% (3.93%) 0.55%

Growth

Metric MSGK SPHR Entertainment median
Revenue growth (TTM) 11.03% 27.46% 6.81%
EPS growth (last fiscal year) 134.41% 113.02% 9.67%
Revenue growth, 5-year CAGR 22.65% (3.21%) 10.07%
Net income growth, 5-year CAGR 0.00% (28.74%) 0.00%

Health

Metric MSGK SPHR Entertainment median
Debt to equity (0.98) 0.35 0.46
Current ratio 0.50 1.22 1.06
Net debt to EBITDA 2.93 2.25 0.97

Dividend

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

Size

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

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