Sphere Entertainment (NYSE:SPHR) & Lionsgate Studios (NYSE:LION) Financial Comparison

Lionsgate Studios (NYSE:LIONGet Free Report) and Sphere Entertainment (NYSE:SPHRGet Free Report) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Institutional & Insider Ownership

92.0% of Sphere Entertainment shares are held by institutional investors. 22.1% of Sphere Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lionsgate Studios and Sphere Entertainment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lionsgate Studios 1 5 8 1 2.60
Sphere Entertainment 2 3 7 1 2.54

Lionsgate Studios presently has a consensus price target of $9.14, indicating a potential upside of 2.54%. Sphere Entertainment has a consensus price target of $80.60, indicating a potential downside of 16.33%. Given Lionsgate Studios’ stronger consensus rating and higher possible upside, analysts clearly believe Lionsgate Studios is more favorable than Sphere Entertainment.

Profitability

This table compares Lionsgate Studios and Sphere Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lionsgate Studios -6.97% N/A -1.33%
Sphere Entertainment -13.87% -17.20% -8.89%

Valuation & Earnings

This table compares Lionsgate Studios and Sphere Entertainment”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lionsgate Studios $3.20 billion 0.81 -$125.30 million ($0.67) -13.30
Sphere Entertainment $1.03 billion 3.31 -$200.65 million ($5.17) -18.63

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

Volatility & Risk

Lionsgate Studios has a beta of -0.48, suggesting that its share price is 148% less volatile than the S&P 500. Comparatively, Sphere Entertainment has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Summary

Lionsgate Studios beats Sphere Entertainment on 10 of the 14 factors compared between the two stocks.

About Lionsgate Studios

(Get Free Report)

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.

About Sphere Entertainment

(Get Free Report)

Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates entertainment dining and nightlife venues markets under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.

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