The Madison Square Garden Company (MSGS) vs Warner Music Group Corp. (WMG)

The Madison Square Garden Company and Warner Music Group Corp. are both Entertainment companies. Warner Music Group Corp. is the larger, with a market value of $14.3B against $9.7B — 1.5× the size. Warner Music Group Corp. trades at the lower P/E: 21.2× against 1,299×. Warner Music Group Corp. grew revenue faster over the last twelve months: 12.9% against 11.0%. Warner Music Group Corp. has the higher net margin (9.20% vs 0.67%) and the higher return on invested capital (12.4% vs 0.00%). Across the 20 metrics below, Warner Music Group Corp. leads on 16 and The Madison Square Garden Company on 4.

Valuation

Metric MSGS WMG Entertainment median
P/E 1,299.48 21.20 22.03
P/S 8.43 1.94 1.47
P/B n/m 14.86 2.00
Price to free cash flow 158.84 16.94 16.60
EV/EBITDA 306.56 12.91 9.65
EV/Sales 8.51 2.50 1.76
Earnings yield 0.08% 4.72% (0.67%)
Free cash flow yield 0.63% 5.90% 3.26%

Profitability

Metric MSGS WMG Entertainment median
Gross margin 27.74% 45.77% 45.02%
Operating margin 2.50% 13.69% 2.30%
Net margin 0.67% 9.20% 0.00%
Free cash flow margin 5.31% 11.45% 1.56%
Return on equity (2.84%) 76.15% 0.00%
Return on assets 0.51% 6.55% 0.00%
Return on invested capital 0.00% 12.39% 0.00%

Growth

Metric MSGS WMG Entertainment median
Revenue growth (TTM) 11.03% 12.91% 5.07%
EPS growth (last fiscal year) 134.41% (16.87%) —
Revenue growth, 5-year CAGR 22.65% 8.49% 10.25%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MSGS WMG Entertainment median
Debt to equity (0.98) 4.94 0.46
Current ratio 0.50 0.73 0.86
Net debt to EBITDA 2.93 3.58 0.72

Dividend

Metric MSGS WMG Entertainment median
Dividend yield — 1.51% 1.16%
Payout ratio 0.00 0.78 0.00

Size

Metric MSGS WMG Entertainment median
Market cap 9.69b 14.28b 1.87b

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