Head to Head Analysis: The Madison Square Garden (MSG) & DreamWorks Animation (DWA)
The Madison Square Garden (NYSE: MSG) and DreamWorks Animation (NASDAQ:DWA) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
This is a breakdown of recent ratings for The Madison Square Garden and DreamWorks Animation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Madison Square Garden||1||3||7||0||2.55|
The Madison Square Garden currently has a consensus price target of $203.00, suggesting a potential downside of 6.06%. DreamWorks Animation has a consensus price target of $29.50, suggesting a potential downside of 28.00%. Given The Madison Square Garden’s stronger consensus rating and higher possible upside, equities research analysts plainly believe The Madison Square Garden is more favorable than DreamWorks Animation.
Institutional and Insider Ownership
84.8% of The Madison Square Garden shares are owned by institutional investors. 18.6% of The Madison Square Garden shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
The Madison Square Garden has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, DreamWorks Animation has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
This table compares The Madison Square Garden and DreamWorks Animation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Madison Square Garden||-3.81%||-1.57%||-1.12%|
Valuation & Earnings
This table compares The Madison Square Garden and DreamWorks Animation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Madison Square Garden||$1.23 billion||3.34||$97.01 million||($1.93)||-111.96|
The Madison Square Garden has higher revenue and earnings than DreamWorks Animation. The Madison Square Garden is trading at a lower price-to-earnings ratio than DreamWorks Animation, indicating that it is currently the more affordable of the two stocks.
The Madison Square Garden beats DreamWorks Animation on 7 of the 11 factors compared between the two stocks.
The Madison Square Garden Company Profile
The Madison Square Garden Company is a holding company, which is engaged in live experiences consisting of celebrated venues, sports teams, and entertainment productions. The Company operates in two segments, which include MSG Entertainment and MSG Sports. The MSG Sports segment includes the Company’s professional sports franchises, which include the New York Knicks (the Knicks) of the National Basketball Association (the NBA), the New York Rangers (the Rangers) of the National Hockey League (the NHL), the New York Liberty (the Liberty) of the Women’s National Basketball Association (the WNBA), the Hartford Wolf Pack of the American Hockey League (the AHL), which is the primary player development team for the Rangers, and the Westchester Knicks, an NBA Development League team. The MSG Entertainment segment includes the Company’s live entertainment events. The Company presents or hosts live entertainment events, including concerts, family shows, performing arts and special events.
DreamWorks Animation Company Profile
Dreamworks Animation, LLC (DreamWorks Animation), formerly DreamWorks Animation SKG, Inc., creates and exploits branded family entertainment, including animated feature films, television series and specials, live entertainment properties and related consumer products. The Company’s segments include Feature Films, Television Series and Specials, Consumer Products, New Media and All Other. The Company has released a total of over 30 animated feature films, including the franchise properties Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.
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