Tencent Music Entertainment Group (NYSE:TME – Get Free Report) and Madison Square Garden Entertainment (NYSE:MSGE – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Valuation & Earnings
This table compares Tencent Music Entertainment Group and Madison Square Garden Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tencent Music Entertainment Group | $3.89 billion | N/A | $924.18 million | $0.96 | 18.48 |
| Madison Square Garden Entertainment | $942.73 million | 2.45 | $37.43 million | $0.70 | 81.77 |
Profitability
This table compares Tencent Music Entertainment Group and Madison Square Garden Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tencent Music Entertainment Group | 34.00% | 11.13% | 8.79% |
| Madison Square Garden Entertainment | 3.65% | -310.15% | 2.75% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Tencent Music Entertainment Group and Madison Square Garden Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tencent Music Entertainment Group | 0 | 3 | 9 | 1 | 2.85 |
| Madison Square Garden Entertainment | 0 | 4 | 2 | 1 | 2.57 |
Tencent Music Entertainment Group presently has a consensus price target of $25.79, indicating a potential upside of 45.33%. Madison Square Garden Entertainment has a consensus price target of $49.17, indicating a potential downside of 14.10%. Given Tencent Music Entertainment Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tencent Music Entertainment Group is more favorable than Madison Square Garden Entertainment.
Institutional & Insider Ownership
24.3% of Tencent Music Entertainment Group shares are held by institutional investors. Comparatively, 96.9% of Madison Square Garden Entertainment shares are held by institutional investors. 16.4% of Madison Square Garden Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Tencent Music Entertainment Group has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Madison Square Garden Entertainment has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Summary
Tencent Music Entertainment Group beats Madison Square Garden Entertainment on 10 of the 13 factors compared between the two stocks.
About Tencent Music Entertainment Group
Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform. In addition, it sells music-related merchandise; and artist-related merchandise, such as branded apparel, posters and art prints, and accessories and integrated and technology-driven music solutions that help IoT device manufacturers build and operate their branded music services on their IoT devices, as well as offers advertising services across its online karaoke platform and online music apps. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
About Madison Square Garden Entertainment
Madison Square Garden Entertainment Corp. engages in the provision of entertainment services. Its portfolio of venues includes The Garden, Radio City Music Hall, the Beacon Theatre, The Theater at Madison Square, and The Chicago Theatre. The company was founded in 1879 and is headquartered in New York, NY.
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