Critical Comparison: NEXON (OTCMKTS:NEXOY) vs. Madison Square Garden (NYSE:MSGS)

Madison Square Garden (NYSE:MSGS) and NEXON (OTCMKTS:NEXOY) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Madison Square Garden and NEXON’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%
NEXON	26.37%	12.45%	9.72%

Analyst Recommendations

This is a breakdown of current ratings for Madison Square Garden and NEXON, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madison Square Garden	0	5	4	0	2.44
NEXON	0	2	2	0	2.50

Madison Square Garden currently has a consensus target price of $471.20, suggesting a potential upside of 20.61%. Given Madison Square Garden’s higher possible upside, research analysts plainly believe Madison Square Garden is more favorable than NEXON.

Valuation and Earnings

This table compares Madison Square Garden and NEXON”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madison Square Garden	$1.15 billion	8.15	$7.76 million	$0.30	1,302.32
NEXON	$3.18 billion	5.17	$616.75 million	C$1.11	18.66

NEXON has higher revenue and earnings than Madison Square Garden. NEXON 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.

Insider and Institutional Ownership

68.9% of Madison Square Garden shares are owned by institutional investors. 19.1% of Madison Square Garden shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

NEXON beats Madison Square Garden on 7 of the 13 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 NEXON

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.