Madison Square Garden Entertainment (NYSE:MSGE – Get Free Report) and DraftKings (NASDAQ:DKNG – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Valuation and Earnings
This table compares Madison Square Garden Entertainment and DraftKings’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Madison Square Garden Entertainment | $653.49 million | 2.43 | -$133.34 million | N/A | N/A |
| DraftKings | $2.24 billion | 11.94 | -$1.38 billion | ($2.90) | -10.79 |
Madison Square Garden Entertainment has higher earnings, but lower revenue than DraftKings.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Madison Square Garden Entertainment | N/A | N/A | N/A |
| DraftKings | -50.42% | -94.41% | -32.43% |
Institutional and Insider Ownership
12.8% of Madison Square Garden Entertainment shares are held by institutional investors. Comparatively, 30.6% of DraftKings shares are held by institutional investors. 55.9% of DraftKings shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Madison Square Garden Entertainment and DraftKings, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madison Square Garden Entertainment | 0 | 3 | 3 | 0 | 2.50 |
| DraftKings | 5 | 6 | 17 | 0 | 2.43 |
Madison Square Garden Entertainment presently has a consensus target price of $43.50, indicating a potential upside of 23.16%. DraftKings has a consensus target price of $27.83, indicating a potential downside of 11.05%. Given Madison Square Garden Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Madison Square Garden Entertainment is more favorable than DraftKings.
Summary
Madison Square Garden Entertainment beats DraftKings on 6 of the 11 factors compared between the two stocks.
About Madison Square Garden Entertainment
Madison Square Garden Entertainment Corp. engages in live entertainment business. The company produces, presents, and hosts live entertainment events, including concerts, sports events, and other live events, such as family shows, performing arts events, and special events. Its operations include a collection of venues, the entertainment and sports bookings business, and the Christmas Spectacular Starring the Radio City Rockettes production. The company was incorporated in 2022 and is based in New York, New York.
About DraftKings
DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming through its DraftKings brand in 5 states, as well as operates Golden Nugget Online Gaming, an iGaming product and gaming brand in 3 states. Its Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in 18 states. The company's daily fantasy sports product is available in 6 countries internationally with 15 distinct sports categories. In addition, it offers DraftKings Marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions, as well as owns Vegas Sports Information Network (VSiN), a multi-platform broadcast and content company. DraftKings Inc. was founded in 2011 and is headquartered in Boston, Massachusetts.
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