TKO Group (NYSE:TKO – Get Free Report) and News (NASDAQ:NWS – Get Free Report) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
Risk and Volatility
TKO Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, News has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Earnings and Valuation
This table compares TKO Group and News”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TKO Group | $2.80 billion | 12.41 | $9.41 million | $1.97 | 89.26 |
| News | $10.09 billion | 1.81 | $266.00 million | $0.86 | 37.57 |
News has higher revenue and earnings than TKO Group. News is trading at a lower price-to-earnings ratio than TKO Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
89.8% of TKO Group shares are held by institutional investors. Comparatively, 14.6% of News shares are held by institutional investors. 61.3% of TKO Group shares are held by insiders. Comparatively, 13.7% of News shares are held 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.
Profitability
This table compares TKO Group and News’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TKO Group | 4.98% | 2.52% | 1.71% |
| News | 5.18% | 5.64% | 3.09% |
Analyst Ratings
This is a summary of current recommendations and price targets for TKO Group and News, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TKO Group | 0 | 2 | 12 | 1 | 2.93 |
| News | 0 | 0 | 0 | 2 | 4.00 |
TKO Group currently has a consensus target price of $168.08, suggesting a potential downside of 4.41%. Given TKO Group’s higher possible upside, equities research analysts plainly believe TKO Group is more favorable than News.
Dividends
TKO Group pays an annual dividend of $1.52 per share and has a dividend yield of 0.9%. News pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. TKO Group pays out 77.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. News pays out 23.3% of its earnings in the form of a dividend.
Summary
News beats TKO Group on 9 of the 17 factors compared between the two stocks.
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.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
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