Contrasting MSG Networks (MSGN) & Its Competitors

MSG Networks (NYSE: MSGN) is one of 32 public companies in the “Cable & other pay television services” industry, but how does it contrast to its peers? We will compare MSG Networks to related businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, risk and dividends.

Profitability

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This table compares MSG Networks and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MSG Networks 40.97% -19.52% 20.90%
MSG Networks Competitors 1,300.24% 29.01% 4.68%

Insider and Institutional Ownership

83.2% of MSG Networks shares are held by institutional investors. Comparatively, 55.9% of shares of all “Cable & other pay television services” companies are held by institutional investors. 18.1% of MSG Networks shares are held by company insiders. Comparatively, 11.1% of shares of all “Cable & other pay television services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

MSG Networks has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, MSG Networks’ peers have a beta of 1.23, meaning that their average share price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for MSG Networks and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MSG Networks 1 2 4 0 2.43
MSG Networks Competitors 292 1474 2275 75 2.52

MSG Networks presently has a consensus price target of $24.40, suggesting a potential upside of 9.17%. As a group, “Cable & other pay television services” companies have a potential upside of 24.43%. Given MSG Networks’ peers stronger consensus rating and higher possible upside, analysts clearly believe MSG Networks has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares MSG Networks and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
MSG Networks $675.35 million $167.34 million 10.07
MSG Networks Competitors $12.86 billion $1.94 billion 55.44

MSG Networks’ peers have higher revenue and earnings than MSG Networks. MSG Networks is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

MSG Networks peers beat MSG Networks on 9 of the 13 factors compared.

MSG Networks Company Profile

MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States. The company owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. It also operates MSG GO that provides live streaming and video on demand, as well as a Website and social media platforms for its brands. The company was formerly known as The Madison Square Garden Company and changed its name to MSG Networks Inc. in October 2015. The company was founded in 1969 and is based in New York, New York.

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