Madison Square Garden (NYSE:MSGS – Get Free Report) and Reading International (NASDAQ:RDI – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Insider & Institutional Ownership
68.9% of Madison Square Garden shares are owned by institutional investors. Comparatively, 44.7% of Reading International shares are owned by institutional investors. 19.1% of Madison Square Garden shares are owned by insiders. Comparatively, 32.4% of Reading International 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.
Analyst Recommendations
This is a summary of current recommendations and price targets for Madison Square Garden and Reading International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Madison Square Garden | 0 | 6 | 3 | 0 | 2.33 |
| Reading International | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Madison Square Garden and Reading International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Madison Square Garden | -2.07% | N/A | -1.39% |
| Reading International | -8.43% | N/A | -4.03% |
Risk & Volatility
Madison Square Garden has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Reading International has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Valuation and Earnings
This table compares Madison Square Garden and Reading International”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 | $1.08 billion | 8.05 | -$22.44 million | ($0.93) | -388.10 |
| Reading International | $202.99 million | 0.14 | -$14.14 million | ($0.77) | -1.62 |
Reading International has lower revenue, but higher earnings than Madison Square Garden. Madison Square Garden is trading at a lower price-to-earnings ratio than Reading International, indicating that it is currently the more affordable of the two stocks.
Summary
Madison Square Garden beats Reading International on 8 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 Reading International
Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.
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