Madison Square Garden Entertainment (NYSE:MSGE – Get Free Report) and Tencent Music Entertainment Group (NYSE:TME – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
96.9% of Madison Square Garden Entertainment shares are owned by institutional investors. Comparatively, 24.3% of Tencent Music Entertainment Group shares are owned by institutional investors. 16.4% of Madison Square Garden Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Madison Square Garden Entertainment and Tencent Music Entertainment Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Madison Square Garden Entertainment | $942.73 million | 2.31 | $37.43 million | $0.70 | 77.07 |
| Tencent Music Entertainment Group | $3.89 billion | 7.74 | $924.18 million | $0.96 | 18.27 |
Tencent Music Entertainment Group has higher revenue and earnings than Madison Square Garden Entertainment. Tencent Music Entertainment Group 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 & Volatility
Madison Square Garden Entertainment has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Tencent Music Entertainment Group has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Madison Square Garden Entertainment and Tencent Music Entertainment Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madison Square Garden Entertainment | 0 | 4 | 3 | 0 | 2.43 |
| Tencent Music Entertainment Group | 0 | 3 | 9 | 1 | 2.85 |
Madison Square Garden Entertainment currently has a consensus price target of $49.17, suggesting a potential downside of 8.87%. Tencent Music Entertainment Group has a consensus price target of $25.79, suggesting a potential upside of 47.02%. Given Tencent Music Entertainment Group’s stronger consensus rating and higher probable upside, analysts clearly believe Tencent Music Entertainment Group is more favorable than Madison Square Garden Entertainment.
Profitability
This table compares Madison Square Garden Entertainment and Tencent Music Entertainment Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Madison Square Garden Entertainment | 3.65% | -310.15% | 2.75% |
| Tencent Music Entertainment Group | 34.00% | 11.13% | 8.79% |
Summary
Tencent Music Entertainment Group beats Madison Square Garden Entertainment on 12 of the 15 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Madison Square Garden Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Madison Square Garden Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
