Critical Comparison: Madison Square Garden Entertainment (NYSE:MSGE) and Alliance Entertainment (NASDAQ:AENT)

Madison Square Garden Entertainment (NYSE:MSGEGet Free Report) and Alliance Entertainment (NASDAQ:AENTGet Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Institutional and Insider Ownership

96.9% of Madison Square Garden Entertainment shares are held by institutional investors. Comparatively, 0.3% of Alliance Entertainment shares are held by institutional investors. 15.3% of Madison Square Garden Entertainment shares are held by insiders. Comparatively, 81.9% of Alliance Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Madison Square Garden Entertainment and Alliance Entertainment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Madison Square Garden Entertainment 0 1 4 0 2.80
Alliance Entertainment 0 0 1 0 3.00

Madison Square Garden Entertainment presently has a consensus target price of $43.00, indicating a potential upside of 14.55%. Alliance Entertainment has a consensus target price of $10.00, indicating a potential upside of 83.82%. Given Alliance Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Alliance Entertainment is more favorable than Madison Square Garden Entertainment.

Earnings and Valuation

This table compares Madison Square Garden Entertainment and Alliance Entertainment”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Madison Square Garden Entertainment $942.73 million 1.89 $37.43 million $0.76 49.39
Alliance Entertainment $1.10 billion 0.25 $4.58 million $0.24 22.67

Madison Square Garden Entertainment has higher earnings, but lower revenue than Alliance Entertainment. Alliance Entertainment is trading at a lower price-to-earnings ratio than Madison Square Garden Entertainment, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Madison Square Garden Entertainment has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Alliance Entertainment has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Madison Square Garden Entertainment and Alliance Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Madison Square Garden Entertainment 3.97% -458.14% 2.92%
Alliance Entertainment 1.10% 15.59% 3.86%

Summary

Madison Square Garden Entertainment beats Alliance Entertainment on 7 of the 13 factors compared between the two stocks.

About Madison Square Garden Entertainment

(Get Free Report)

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.

About Alliance Entertainment

(Get Free Report)

Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.

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