Madison Square Garden (NYSE:MSGS – Get Free Report) and Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Risk and Volatility
Madison Square Garden has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Valuation & Earnings
This table compares Madison Square Garden and Take-Two Interactive Software”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Madison Square Garden | $1.15 billion | 8.25 | $7.76 million | $0.30 | 1,317.34 |
| Take-Two Interactive Software | $6.66 billion | 5.92 | -$298.20 million | ($1.73) | -121.75 |
Madison Square Garden has higher earnings, but lower revenue than Take-Two Interactive Software. Take-Two Interactive Software is trading at a lower price-to-earnings ratio than Madison Square Garden, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Madison Square Garden and Take-Two Interactive Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Madison Square Garden | 0.67% | -3.47% | 0.64% |
| Take-Two Interactive Software | -4.79% | 12.25% | 4.46% |
Insider and Institutional Ownership
68.9% of Madison Square Garden shares are owned by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are owned by institutional investors. 19.1% of Madison Square Garden shares are owned by company insiders. Comparatively, 1.1% of Take-Two Interactive Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Madison Square Garden and Take-Two Interactive Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madison Square Garden | 0 | 5 | 4 | 0 | 2.44 |
| Take-Two Interactive Software | 1 | 1 | 19 | 1 | 2.91 |
Madison Square Garden currently has a consensus price target of $471.20, indicating a potential upside of 19.23%. Take-Two Interactive Software has a consensus price target of $296.95, indicating a potential upside of 40.99%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, analysts clearly believe Take-Two Interactive Software is more favorable than Madison Square Garden.
Summary
Take-Two Interactive Software beats Madison Square Garden on 9 of the 15 factors compared between the two stocks.
About Madison Square Garden
Madison Square Garden Sports Corp. operates as a professional sports company in the United States. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. The company also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League. In addition, it operates professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.
About Take-Two Interactive Software
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.
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