The Madison Square Garden (NYSE: MSG) and 500.Com (NYSE:WBAI) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
This table compares The Madison Square Garden and 500.Com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Madison Square Garden||5.21%||-1.00%||-0.67%|
70.9% of The Madison Square Garden shares are held by institutional investors. Comparatively, 11.7% of 500.Com shares are held by institutional investors. 20.4% of The Madison Square Garden shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for The Madison Square Garden and 500.Com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Madison Square Garden||0||2||5||0||2.71|
The Madison Square Garden presently has a consensus price target of $222.00, suggesting a potential downside of 8.54%. Given The Madison Square Garden’s higher probable upside, equities analysts plainly believe The Madison Square Garden is more favorable than 500.Com.
Earnings & Valuation
This table compares The Madison Square Garden and 500.Com’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Madison Square Garden||$1.32 billion||4.34||-$72.72 million||($1.11)||-218.67|
|500.Com||$19.83 million||37.37||-$48.73 million||N/A||N/A|
500.Com has lower revenue, but higher earnings than The Madison Square Garden.
Volatility and Risk
The Madison Square Garden has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, 500.Com has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500.
The Madison Square Garden beats 500.Com on 9 of the 11 factors compared between the two stocks.
About The Madison Square Garden
The Madison Square Garden Company, through its subsidiaries, engages in sports and entertainment businesses in the United States. The company operates in two segments, MSG Sports and MSG Entertainment. The MSG Sports segment owns and operates professional sports franchises, as well as promotes, produces, and/or presents a range of other live sporting events, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports, tennis, and college wrestling. The MSG Entertainment segment presents or hosts live entertainment events comprising concerts, family shows, performing arts, and special events, as well as creates, produces, and/or presents live productions in its venues. The company also operates 24 entertainment dining and nightlife venues in New York City, Las Vegas, and Los Angeles, as well as in Sydney, Australia, primarily under the Tao, Marquee, Lavo, Avenue, The Stanton Social, Beauty & Essex, and Vandal brands; and manages the food and beverage operations at the Dream Downtown and Dream Midtown hotels in New York City. The Madison Square Garden Company was founded in 1879 and is based in New York, New York.
500.com Limited provides online sports lottery services in the People's Republic of China. It operates as an aggregator and processor of lottery purchase orders from its registered user accounts. The company offers a suite of online lottery services, information, user tools, and virtual community venues. Its lottery sales services comprise individual lottery purchase, lottery pool purchase, automatic tag-along purchase, recurring purchase, and locked-in lottery number purchase services. The company provides its services through its mobile applications to mobile users, as well as through its online platform. The company was formerly known as 500wan.com Limited and changed its name to 500.com Limited in October 2013. 500.com Limited was founded in 2001 and is based in Shenzhen, the People's Republic of China.
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