Financial Analysis: Paramount Skydance (NASDAQ:PSKY) vs. Sphere Entertainment (NYSE:SPHR)

Paramount Skydance (NASDAQ:PSKY – Get Free Report) and Sphere Entertainment (NYSE:SPHR – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares Paramount Skydance and Sphere Entertainment”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paramount Skydance $28.89 billion 0.39 -$621.00 million $0.29 34.45
Sphere Entertainment $1.22 billion 3.95 $33.40 million ($2.68) -50.12

Sphere Entertainment has lower revenue, but higher earnings than Paramount Skydance. Sphere Entertainment is trading at a lower price-to-earnings ratio than Paramount Skydance, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Paramount Skydance -2.13% 4.11% 1.21%
Sphere Entertainment -6.19% -1.38% -0.74%

Volatility and Risk

Paramount Skydance has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Sphere Entertainment has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Paramount Skydance and Sphere Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Skydance 9 5 4 0 1.72
Sphere Entertainment 0 2 12 0 2.86

Paramount Skydance presently has a consensus price target of $11.17, indicating a potential upside of 11.78%. Sphere Entertainment has a consensus price target of $166.00, indicating a potential upside of 23.59%. Given Sphere Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Sphere Entertainment is more favorable than Paramount Skydance.

Insider & Institutional Ownership

73.0% of Paramount Skydance shares are held by institutional investors. Comparatively, 92.0% of Sphere Entertainment shares are held by institutional investors. 0.4% of Paramount Skydance shares are held by company insiders. Comparatively, 22.1% of Sphere Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Sphere Entertainment beats Paramount Skydance on 8 of the 14 factors compared between the two stocks.

About Paramount Skydance

(Get Free Report)

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.

About Sphere Entertainment

(Get Free Report)

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.

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