Reviewing Marcus (NYSE:MCS) & Madison Square Garden (NYSE:MSGS)

Madison Square Garden (NYSE:MSGSGet Free Report) and Marcus (NYSE:MCSGet Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares Madison Square Garden and Marcus”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Madison Square Garden $1.04 billion 5.36 -$22.44 million ($0.92) -252.07
Marcus $775.79 million 0.62 -$7.79 million $0.45 34.11

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

Profitability

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

Net Margins Return on Equity Return on Assets
Madison Square Garden -2.16% -1.76% -1.56%
Marcus 1.91% 4.28% 1.88%

Institutional & Insider Ownership

68.9% of Madison Square Garden shares are owned by institutional investors. Comparatively, 81.6% of Marcus shares are owned by institutional investors. 22.1% of Madison Square Garden shares are owned by insiders. Comparatively, 5.0% of Marcus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Madison Square Garden has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Marcus has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Madison Square Garden and Marcus, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Madison Square Garden 1 1 5 0 2.57
Marcus 0 2 3 1 2.83

Madison Square Garden currently has a consensus target price of $258.83, suggesting a potential upside of 11.61%. Marcus has a consensus target price of $24.50, suggesting a potential upside of 59.61%. Given Marcus’ stronger consensus rating and higher probable upside, analysts clearly believe Marcus is more favorable than Madison Square Garden.

Summary

Marcus beats Madison Square Garden on 11 of the 15 factors compared between the two stocks.

About Madison Square Garden

(Get Free Report)

Madison Square Garden Sports Corp. operates as a professional sports company in the United States. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. The company also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League. In addition, it operates professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.

About Marcus

(Get Free Report)

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

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