Life Time Group (NYSE:LTH – Get Free Report) and Madison Square Garden (NYSE:MSGS – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Risk and Volatility
Life Time Group has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Madison Square Garden has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
Profitability
This table compares Life Time Group and Madison Square Garden’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Life Time Group | 9.91% | 9.75% | 3.65% |
| Madison Square Garden | -2.31% | N/A | -1.60% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Life Time Group | 0 | 6 | 10 | 0 | 2.63 |
| Madison Square Garden | 1 | 4 | 5 | 0 | 2.40 |
Life Time Group currently has a consensus target price of $37.00, indicating a potential upside of 38.77%. Madison Square Garden has a consensus target price of $261.33, indicating a potential downside of 8.01%. Given Life Time Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Life Time Group is more favorable than Madison Square Garden.
Earnings and Valuation
This table compares Life Time Group and Madison Square Garden”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Life Time Group | $2.62 billion | 2.24 | $156.24 million | $1.29 | 20.67 |
| Madison Square Garden | $1.04 billion | 6.57 | -$22.44 million | ($0.98) | -289.89 |
Life Time Group has higher revenue and earnings than Madison Square Garden. Madison Square Garden is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
79.4% of Life Time Group shares are held by institutional investors. Comparatively, 68.9% of Madison Square Garden shares are held by institutional investors. 8.7% of Life Time Group shares are held by company insiders. Comparatively, 19.1% of Madison Square Garden shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Life Time Group beats Madison Square Garden on 12 of the 14 factors compared between the two stocks.
About Life Time Group
Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.
About Madison Square Garden
Madison Square Garden Sports Corp. operates as a professional sports company in the United States. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. The company also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League. In addition, it operates professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.
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