TKO Group (NYSE:TKO – Get Free Report) and Skydance (NYSE:SKYD – Get Free Report) are both large-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Analyst Ratings
This is a breakdown of recent ratings and target prices for TKO Group and Skydance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TKO Group | 0 | 6 | 10 | 0 | 2.62 |
| Skydance | 9 | 5 | 4 | 0 | 1.72 |
TKO Group presently has a consensus target price of $237.50, indicating a potential upside of 33.66%. Skydance has a consensus target price of $5.78, indicating a potential downside of 36.79%. Given TKO Group’s stronger consensus rating and higher possible upside, research analysts plainly believe TKO Group is more favorable than Skydance.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TKO Group | $4.74 billion | 7.10 | $195.40 million | $2.85 | 62.35 |
| Skydance | $28.89 billion | 0.36 | -$621.00 million | N/A | N/A |
TKO Group has higher earnings, but lower revenue than Skydance.
Risk & Volatility
TKO Group has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Skydance has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
Institutional and Insider Ownership
89.8% of TKO Group shares are owned by institutional investors. Comparatively, 73.0% of Skydance shares are owned by institutional investors. 64.3% of TKO Group shares are owned by insiders. Comparatively, 0.4% of Skydance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
TKO Group pays an annual dividend of $3.16 per share and has a dividend yield of 1.8%. Skydance pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. TKO Group pays out 110.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares TKO Group and Skydance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TKO Group | 4.33% | 2.67% | 1.49% |
| Skydance | -2.13% | 4.11% | 1.21% |
Summary
TKO Group beats Skydance on 9 of the 14 factors compared between the two stocks.
About TKO Group
TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.
About Skydance
Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.
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