DreamWorks Animation (NASDAQ: DWA) and MSG Networks (NYSE:MSGN) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Risk and Volatility
DreamWorks Animation has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, MSG Networks has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
Earnings and Valuation
This table compares DreamWorks Animation and MSG Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MSG Networks||$673.00 million||1.89||$323.63 million||$2.33||8.88|
MSG Networks has higher revenue and earnings than DreamWorks Animation. MSG Networks is trading at a lower price-to-earnings ratio than DreamWorks Animation, indicating that it is currently the more affordable of the two stocks.
This table compares DreamWorks Animation and MSG Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
78.3% of MSG Networks shares are owned by institutional investors. 18.1% of MSG Networks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for DreamWorks Animation and MSG Networks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DreamWorks Animation presently has a consensus target price of $29.50, indicating a potential downside of 28.00%. MSG Networks has a consensus target price of $24.13, indicating a potential upside of 16.55%. Given MSG Networks’ stronger consensus rating and higher probable upside, analysts clearly believe MSG Networks is more favorable than DreamWorks Animation.
MSG Networks beats DreamWorks Animation on 10 of the 11 factors compared between the two stocks.
About DreamWorks Animation
Dreamworks Animation, LLC (DreamWorks Animation), formerly DreamWorks Animation SKG, Inc., creates and exploits branded family entertainment, including animated feature films, television series and specials, live entertainment properties and related consumer products. The Company’s segments include Feature Films, Television Series and Specials, Consumer Products, New Media and All Other. The Company has released a total of over 30 animated feature films, including the franchise properties Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.
About MSG Networks
MSG Networks Inc., formerly The Madison Square Garden Company, is engaged in sports production, and content development and distribution. The Company owns and operates two regional sports and entertainment networks, MSG Network (MSGN) and MSG+, collectively MSG Networks. Its networks are distributed throughout its territory, which includes all of New York State and significant portions of New Jersey and Connecticut, as well as parts of Pennsylvania. The Company delivers live games of the New York Knicks (the Knicks) of the National Basketball Association (NBA); the New York Rangers (the Rangers), New York Islanders (the Islanders), New Jersey Devils (the Devils) and Buffalo Sabres (the Sabres) of the National Hockey League (NHL); the New York Liberty (the Liberty) of the Women’s National Basketball Association; the New York Red Bulls (the Red Bulls) of Major League Soccer (MLS), and the Westchester Knicks of the National Basketball Association Developmental League.
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