Critical Review: Sycamore Entertainment Group (OTCMKTS:SEGI) versus Sphere Entertainment (NYSE:SPHR)

Sycamore Entertainment Group (OTCMKTS:SEGI) and Sphere Entertainment (NYSE:SPHR) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Risk & Volatility

Sycamore Entertainment Group has a beta of 62.15, meaning that its stock price is 6,115% more volatile than the S&P 500. Comparatively, Sphere Entertainment has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sycamore Entertainment Group	N/A	N/A	N/A
Sphere Entertainment	-14.68%	-19.27%	-9.85%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sycamore Entertainment Group and Sphere Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sycamore Entertainment Group	0	0	0	0	0.00
Sphere Entertainment	2	3	5	0	2.30

Sphere Entertainment has a consensus target price of $54.88, indicating a potential downside of 7.15%. Given Sphere Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Sphere Entertainment is more favorable than Sycamore Entertainment Group.

Insider & Institutional Ownership

92.0% of Sphere Entertainment shares are owned by institutional investors. 75.5% of Sycamore Entertainment Group shares are owned by insiders. Comparatively, 22.1% of Sphere Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sycamore Entertainment Group and Sphere Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sycamore Entertainment Group	N/A	N/A	N/A	N/A	N/A
Sphere Entertainment	$1.03 billion	2.06	-$200.65 million	($5.32)	-11.11

Sycamore Entertainment Group has higher earnings, but lower revenue than Sphere Entertainment.

About Sycamore Entertainment Group

Sycamore Entertainment Group, Inc., a diversified entertainment company, which specializes in the acquisition, marketing, and worldwide distribution of feature-length motion pictures. The company is based in Seattle, Washington.

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.