Reviewing TKO Group (NYSE:TKO) & STUB (NYSE:STUB)

STUB (NYSE:STUB) and TKO Group (NYSE:TKO) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for STUB and TKO Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STUB	2	6	6	0	2.29
TKO Group	0	5	14	0	2.74

STUB presently has a consensus target price of $10.17, suggesting a potential upside of 65.45%. TKO Group has a consensus target price of $229.29, suggesting a potential upside of 20.55%. Given STUB’s higher possible upside, analysts plainly believe STUB is more favorable than TKO Group.

Risk & Volatility

STUB has a beta of 3.44, indicating that its stock price is 244% more volatile than the S&P 500. Comparatively, TKO Group has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Profitability

This table compares STUB and TKO Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
STUB	-93.54%	-9.50%	-2.67%
TKO Group	5.19%	3.35%	1.80%

Insider and Institutional Ownership

89.8% of TKO Group shares are owned by institutional investors. 31.0% of STUB shares are owned by company insiders. Comparatively, 64.3% of TKO Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares STUB and TKO Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STUB	$1.75 billion	1.35	-$1.91 billion	($5.74)	-1.07
TKO Group	$4.74 billion	7.60	$195.40 million	$3.71	51.27

TKO Group has higher revenue and earnings than STUB. STUB is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.

Summary

TKO Group beats STUB on 12 of the 14 factors compared between the two stocks.

About STUB

Stubhub Holdings Inc., through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc. is based in NEW YORK.

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.