Analyzing Sphere Entertainment (SPHR) and Its Rivals

Sphere Entertainment (NYSE:SPHR) is one of 185 public companies in the “Entertainment” industry, but how does it contrast to its competitors? We will compare Sphere Entertainment to similar businesses based on the strength of its valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings for Sphere Entertainment and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sphere Entertainment	1	2	11	0	2.71
Sphere Entertainment Competitors	1897	4557	9687	257	2.51

Sphere Entertainment presently has a consensus target price of $156.60, suggesting a potential upside of 23.51%. As a group, “Entertainment” companies have a potential upside of 14.32%. Given Sphere Entertainment’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sphere Entertainment is more favorable than its competitors.

Risk & Volatility

Sphere Entertainment has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Sphere Entertainment’s competitors have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.

Profitability

This table compares Sphere Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sphere Entertainment	-11.60%	-0.78%	-0.42%
Sphere Entertainment Competitors	9.71%	-32.22%	-3.02%

Institutional and Insider Ownership

92.0% of Sphere Entertainment shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are owned by institutional investors. 22.1% of Sphere Entertainment shares are owned by insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are owned by 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 Sphere Entertainment and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sphere Entertainment	$1.22 billion	$33.40 million	-26.86
Sphere Entertainment Competitors	$6.20 billion	$67.29 million	2.41

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

Summary

Sphere Entertainment beats its competitors on 7 of the 13 factors compared.

About Sphere Entertainment

Sphere Entertainment Co. is a live entertainment and media company whose businesses include Sphere and MSG Networks. Sphere is a large-scale venue in Las Vegas designed for concerts, films and other events, featuring immersive visuals and sound. The company also operates Sphere Studios, which develops content and technology for the venue and other applications. MSG Networks operates regional sports and entertainment networks serving viewers in the New York metropolitan area. Its programming includes live coverage of professional sports, as well as news and other original content, with related streaming services also available to consumers.