Analyzing Pearson (NYSE:PSO) & Madison Square Garden Entertainment (NYSE:MSGE)

Pearson (NYSE:PSO) and Madison Square Garden Entertainment (NYSE:MSGE) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Volatility and Risk

Pearson has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Madison Square Garden Entertainment has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Insider and Institutional Ownership

2.1% of Pearson shares are held by institutional investors. Comparatively, 96.9% of Madison Square Garden Entertainment shares are held by institutional investors. 0.1% of Pearson shares are held by company insiders. Comparatively, 16.4% of Madison Square Garden Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pearson	N/A	N/A	N/A
Madison Square Garden Entertainment	3.65%	-310.15%	2.75%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pearson	$3.52 billion	2.37	$554.61 million	N/A	N/A
Madison Square Garden Entertainment	$942.73 million	2.09	$37.43 million	$0.70	69.80

Pearson has higher revenue and earnings than Madison Square Garden Entertainment.

Analyst Ratings

This is a breakdown of current ratings and price targets for Pearson and Madison Square Garden Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pearson	0	2	2	1	2.80
Madison Square Garden Entertainment	0	3	4	0	2.57

Pearson currently has a consensus price target of $18.00, suggesting a potential upside of 38.51%. Madison Square Garden Entertainment has a consensus price target of $45.50, suggesting a potential downside of 6.88%. Given Pearson’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Pearson is more favorable than Madison Square Garden Entertainment.

Summary

Pearson beats Madison Square Garden Entertainment on 8 of the 13 factors compared between the two stocks.

About Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.

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.