Reviewing SMC Entertainment (OTCMKTS:SMCE) & TKO Group (NYSE:TKO)

TKO Group (NYSE:TKO) and SMC Entertainment (OTCMKTS:SMCE) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Valuation & Earnings

This table compares TKO Group and SMC Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TKO Group	$2.80 billion	13.13	$9.41 million	$2.42	76.71
SMC Entertainment	N/A	N/A	-$8.43 million	($0.01)	-0.06

TKO Group has higher revenue and earnings than SMC Entertainment. SMC Entertainment is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

TKO Group has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, SMC Entertainment has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for TKO Group and SMC Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TKO Group	0	2	13	1	2.94
SMC Entertainment	0	0	0	0	0.00

TKO Group presently has a consensus price target of $189.6923, suggesting a potential upside of 2.18%. Given TKO Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TKO Group is more favorable than SMC Entertainment.

Institutional and Insider Ownership

89.8% of TKO Group shares are owned by institutional investors. 61.3% of TKO Group shares are owned by company insiders. Comparatively, 41.2% of SMC Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares TKO Group and SMC Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TKO Group	5.40%	2.82%	1.91%
SMC Entertainment	N/A	N/A	-10,392.01%

Summary

TKO Group beats SMC Entertainment on 14 of the 14 factors compared between the two stocks.

About TKO Group

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.

About SMC Entertainment

SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.