Analyzing IMAX (NYSE:IMAX) & Madison Square Garden Entertainment (NYSE:MSGE)

IMAX (NYSE:IMAX) and Madison Square Garden Entertainment (NYSE:MSGE) are both mid-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Volatility & Risk

IMAX has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Madison Square Garden Entertainment has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares IMAX and Madison Square Garden Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IMAX	9.84%	15.47%	7.49%
Madison Square Garden Entertainment	6.24%	480.83%	4.16%

Earnings and Valuation

This table compares IMAX and Madison Square Garden Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IMAX	$410.21 million	7.16	$34.88 million	$0.72	74.44
Madison Square Garden Entertainment	$1.06 billion	3.06	$66.19 million	$1.38	58.13

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

Analyst Ratings

This is a summary of current ratings for IMAX and Madison Square Garden Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IMAX	0	3	10	0	2.77
Madison Square Garden Entertainment	0	6	4	1	2.55

IMAX presently has a consensus price target of $54.45, indicating a potential upside of 1.60%. Madison Square Garden Entertainment has a consensus price target of $91.62, indicating a potential upside of 14.22%. Given Madison Square Garden Entertainment’s higher possible upside, analysts plainly believe Madison Square Garden Entertainment is more favorable than IMAX.

Insider and Institutional Ownership

93.5% of IMAX shares are owned by institutional investors. Comparatively, 96.9% of Madison Square Garden Entertainment shares are owned by institutional investors. 20.6% of IMAX shares are owned by insiders. Comparatively, 16.4% of Madison Square Garden Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Madison Square Garden Entertainment beats IMAX on 8 of the 15 factors compared between the two stocks.

About IMAX

IMAX Corporation, together with its subsidiaries, operates as a technology platform for entertainment and events worldwide. The company operates in two segments, Content Solutions and Technology Products and Services. The company offers IMAX DMR, a proprietary technology that digitally remasters films and other content into IMAX formats for distribution to the IMAX network; IMAX Enhanced that provides end-to-end technology across streaming content and entertainment devices at home; and SSIMWAVE, an AI-driven video quality solutions for media and entertainment companies. It also offers preventative and emergency maintenance services and quality monitoring to the IMAX network; film post-production services; and IMAX film and digital cameras to content creators. In addition, the company engages in the distribution of large-format documentary films to institutional theaters, as well as live performances and interactive events with artists and creators; after-market sales of IMAX System parts and 3D glasses; sale or lease of IMAX theater systems; provision of management services to three other theaters, as well as production advice and technical assistance to documentary and Hollywood filmmakers; and rental of company’s proprietary 2D and 3D large-format film cameras. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It offers its services under the IMAX, IMAX 3D, Experience It In IMAX, The IMAX Experience, DMR, Filmed For IMAXTM, IMAX Live, IMAX Enhanced, and SSIMWAVE. The company operates a network of IMAX systems comprising commercial multiplexes, commercial destinations, and institutional locations in 90 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

About Madison Square Garden Entertainment

Madison Square Garden Entertainment Corp. engages in the provision of entertainment services. Its portfolio of venues includes The Garden, Radio City Music Hall, the Beacon Theatre, The Theater at Madison Square, and The Chicago Theatre. The company was founded in 1879 and is headquartered in New York, NY.