Head to Head Analysis: TKO Group (NYSE:TKO) and Paramount Skydance (NASDAQ:PSKY)

TKO Group (NYSE:TKO) and Paramount Skydance (NASDAQ:PSKY) are both large-cap communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for TKO Group and Paramount Skydance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TKO Group	0	6	10	0	2.62
Paramount Skydance	9	5	4	0	1.72

TKO Group presently has a consensus price target of $237.50, suggesting a potential upside of 35.11%. Paramount Skydance has a consensus price target of $11.17, suggesting a potential upside of 17.54%. Given TKO Group’s stronger consensus rating and higher probable upside, analysts plainly believe TKO Group is more favorable than Paramount Skydance.

Earnings & Valuation

This table compares TKO Group and Paramount Skydance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TKO Group	$4.74 billion	7.03	$195.40 million	$2.85	61.68
Paramount Skydance	$28.89 billion	0.37	-$621.00 million	$0.29	32.76

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

Insider & Institutional Ownership

89.8% of TKO Group shares are held by institutional investors. Comparatively, 73.0% of Paramount Skydance shares are held by institutional investors. 64.3% of TKO Group shares are held by insiders. Comparatively, 0.4% of Paramount Skydance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

TKO Group pays an annual dividend of $3.16 per share and has a dividend yield of 1.8%. Paramount Skydance pays an annual dividend of $0.20 per share and has a dividend yield of 2.1%. TKO Group pays out 110.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paramount Skydance pays out 69.0% of its earnings in the form of a dividend. Paramount Skydance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

TKO Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Paramount Skydance has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TKO Group	4.33%	2.67%	1.49%
Paramount Skydance	-2.13%	4.11%	1.21%

Summary

TKO Group beats Paramount Skydance on 11 of the 16 factors compared between the two stocks.

About TKO Group

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets. In addition, the company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.

About Paramount Skydance

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.