Sphere Entertainment (NYSE:SPHR) & PLAYSTUDIOS (NASDAQ:MYPS) Critical Analysis

Sphere Entertainment (NYSE:SPHR – Get Free Report) and PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

This table compares Sphere Entertainment and PLAYSTUDIOS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sphere Entertainment -6.19% -1.38% -0.74%
PLAYSTUDIOS -20.65% -19.61% -15.33%

Analyst Recommendations

This is a summary of recent recommendations for Sphere Entertainment and PLAYSTUDIOS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sphere Entertainment 0 2 12 0 2.86
PLAYSTUDIOS 1 2 1 0 2.00

Sphere Entertainment currently has a consensus price target of $166.00, indicating a potential upside of 19.99%. PLAYSTUDIOS has a consensus price target of $1.25, indicating a potential upside of 180.14%. Given PLAYSTUDIOS’s higher probable upside, analysts clearly believe PLAYSTUDIOS is more favorable than Sphere Entertainment.

Insider and Institutional Ownership

92.0% of Sphere Entertainment shares are owned by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are owned by institutional investors. 22.1% of Sphere Entertainment shares are owned by company insiders. Comparatively, 14.9% of PLAYSTUDIOS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Sphere Entertainment and PLAYSTUDIOS”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sphere Entertainment $1.22 billion 4.07 $33.40 million ($2.68) -51.62
PLAYSTUDIOS $235.10 million 0.23 -$28.64 million ($0.36) -1.24

Sphere Entertainment has higher revenue and earnings than PLAYSTUDIOS. Sphere Entertainment is trading at a lower price-to-earnings ratio than PLAYSTUDIOS, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Sphere Entertainment has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Summary

Sphere Entertainment beats PLAYSTUDIOS on 11 of the 14 factors compared between the two stocks.

About Sphere Entertainment

(Get Free Report)

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 PLAYSTUDIOS

(Get Free Report)

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.

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