Sphere Entertainment (NYSE:SPHR – Get Free Report) and Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
Insider and Institutional Ownership
92.0% of Sphere Entertainment shares are held by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are held by institutional investors. 25.1% of Sphere Entertainment shares are held by insiders. Comparatively, 79.9% of Lucky Strike Entertainment 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.
Risk & Volatility
Sphere Entertainment has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sphere Entertainment | $1.13 billion | 1.23 | -$200.65 million | ($10.02) | -3.87 |
| Lucky Strike Entertainment | $1.18 billion | 1.10 | -$83.58 million | ($0.07) | -130.43 |
Lucky Strike Entertainment has higher revenue and earnings than Sphere Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Sphere Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for Sphere Entertainment and Lucky Strike Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sphere Entertainment | 1 | 3 | 5 | 0 | 2.44 |
| Lucky Strike Entertainment | 0 | 2 | 2 | 0 | 2.50 |
Sphere Entertainment presently has a consensus target price of $46.22, indicating a potential upside of 19.13%. Lucky Strike Entertainment has a consensus target price of $11.50, indicating a potential upside of 25.96%. Given Lucky Strike Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Lucky Strike Entertainment is more favorable than Sphere Entertainment.
Profitability
This table compares Sphere Entertainment and Lucky Strike Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sphere Entertainment | -32.76% | -16.48% | -8.30% |
| Lucky Strike Entertainment | 1.11% | -35.76% | 1.68% |
Summary
Lucky Strike Entertainment beats Sphere Entertainment on 8 of the 14 factors compared between the two stocks.
About Sphere Entertainment
Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates entertainment dining and nightlife venues markets under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.
About Lucky Strike Entertainment
Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.
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