Lionsgate Studios (NYSE:LION – Get Free Report) and Sphere Entertainment (NYSE:SPHR – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
92.0% of Sphere Entertainment shares are owned by institutional investors. 9.4% of Lionsgate Studios shares are owned by insiders. Comparatively, 22.1% of Sphere Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Lionsgate Studios and Sphere Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lionsgate Studios | 2 | 4 | 8 | 1 | 2.53 |
| Sphere Entertainment | 2 | 4 | 7 | 0 | 2.38 |
Earnings & Valuation
This table compares Lionsgate Studios and Sphere Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lionsgate Studios | $3.11 billion | 0.85 | -$125.30 million | ($0.67) | -13.63 |
| Sphere Entertainment | $1.03 billion | 3.22 | -$200.65 million | ($5.17) | -18.12 |
Lionsgate Studios has higher revenue and earnings than Sphere Entertainment. Sphere Entertainment is trading at a lower price-to-earnings ratio than Lionsgate Studios, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lionsgate Studios and Sphere Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lionsgate Studios | -6.97% | N/A | -1.33% |
| Sphere Entertainment | -13.87% | -17.20% | -8.89% |
Volatility and Risk
Lionsgate Studios has a beta of -0.48, indicating that its stock price is 148% less volatile than the S&P 500. Comparatively, Sphere Entertainment has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.
Summary
Lionsgate Studios beats Sphere Entertainment on 11 of the 15 factors compared between the two stocks.
About Lionsgate Studios
Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.
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.
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