Sphere Entertainment (NYSE:SPHR – Get Free Report) and PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Risk and Volatility
Sphere Entertainment has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Valuation & Earnings
This table compares Sphere Entertainment and PLAYSTUDIOS”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sphere Entertainment | $1.22 billion | 4.07 | $33.40 million | ($2.68) | -51.62 |
| PLAYSTUDIOS | $235.10 million | 0.23 | -$28.64 million | ($0.36) | -1.24 |
Sphere Entertainment has higher revenue and earnings than PLAYSTUDIOS. Sphere Entertainment is trading at a lower price-to-earnings ratio than PLAYSTUDIOS, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Sphere Entertainment and PLAYSTUDIOS, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sphere Entertainment | 0 | 2 | 12 | 0 | 2.86 |
| PLAYSTUDIOS | 1 | 2 | 1 | 0 | 2.00 |
Sphere Entertainment currently has a consensus target price of $166.00, suggesting a potential upside of 19.99%. PLAYSTUDIOS has a consensus target price of $1.25, suggesting a potential upside of 180.14%. Given PLAYSTUDIOS’s higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than Sphere Entertainment.
Profitability
This table compares Sphere Entertainment and PLAYSTUDIOS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sphere Entertainment | -6.19% | -1.38% | -0.74% |
| PLAYSTUDIOS | -20.65% | -19.61% | -15.33% |
Insider and Institutional Ownership
92.0% of Sphere Entertainment shares are owned by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are owned by institutional investors. 22.1% of Sphere Entertainment shares are owned by company insiders. Comparatively, 14.9% of PLAYSTUDIOS shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Sphere Entertainment beats PLAYSTUDIOS on 11 of the 14 factors compared between the two stocks.
About Sphere Entertainment
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.
About PLAYSTUDIOS
PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.
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