Madison Square Garden (NYSE:MSGS – Get Free Report) and Carnival (NYSE:CUK – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Insider & Institutional Ownership
68.9% of Madison Square Garden shares are owned by institutional investors. Comparatively, 23.8% of Carnival shares are owned by institutional investors. 19.1% of Madison Square Garden shares are owned by company insiders. Comparatively, 0.1% of Carnival shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Madison Square Garden and Carnival’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Madison Square Garden | -2.31% | N/A | -1.60% |
| Carnival | 10.37% | 28.39% | 6.09% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madison Square Garden | 1 | 4 | 5 | 0 | 2.40 |
| Carnival | 0 | 1 | 0 | 0 | 2.00 |
Madison Square Garden currently has a consensus target price of $261.33, indicating a potential downside of 9.56%. Given Madison Square Garden’s stronger consensus rating and higher possible upside, research analysts clearly believe Madison Square Garden is more favorable than Carnival.
Risk and Volatility
Madison Square Garden has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Carnival has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500.
Valuation and Earnings
This table compares Madison Square Garden and Carnival”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Madison Square Garden | $1.04 billion | 6.68 | -$22.44 million | ($0.98) | -294.86 |
| Carnival | $26.62 billion | 0.20 | $2.76 billion | $2.00 | 14.37 |
Carnival has higher revenue and earnings than Madison Square Garden. Madison Square Garden is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.
Summary
Carnival beats Madison Square Garden on 8 of the 14 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 Carnival
Carnival Plc operates as a global cruise and vacation company. The firm offers holiday and vacation products to a customer base that is broadly varied in terms of cultures, languages and leisure-time preferences. It operates through the North America and Australia (NAA), Europe and Asia (EA), Cruise Support, and Tour and Other segments. The NAA segment includes Carnival Cruise Line, Holland America Line, P and O Cruises (Australia), Princess and Seabourn. The EA segment includes AIDA, Costa, Cunard, and P and O Cruises (UK). The Cruise Support segment includes a portfolio of port destinations and other services, all of which are operated for the benefit of cruise brands. The Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. The company was founded on July 19, 2000 and is headquartered in Southampton, the United Kingdom.
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