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MSGS vs. WMG: A Head-to-Head Stock Comparison

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Here’s a clear look at MSGS and WMG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMSGSWMG
Company NameMadison Square Garden Sports Corp.Warner Music Group Corp.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentEntertainment
Market Capitalization4.70 billion USD16.91 billion USD
ExchangeNYSENasdaqGS
Listing DateSeptember 17, 2015June 3, 2020
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MSGS and WMG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

MSGS vs. WMG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMSGSWMG
5-Day Price Return1.49%0.59%
13-Week Price Return-1.51%18.35%
26-Week Price Return-7.33%-7.60%
52-Week Price Return-6.33%12.13%
Month-to-Date Return-3.25%10.87%
Year-to-Date Return-13.36%4.65%
10-Day Avg. Volume0.29M2.58M
3-Month Avg. Volume0.17M1.74M
3-Month Volatility22.99%23.72%
Beta0.741.30

Profitability

Return on Equity (TTM)

MSGS

-6.84%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

MSGS has a negative Return on Equity of -6.84%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

WMG

53.54%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

WMG’s Return on Equity of 53.54% is exceptionally high, placing it well beyond the typical range for the Entertainment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

MSGS vs. WMG: A comparison of their Return on Equity (TTM) against the Entertainment industry benchmark.

Net Profit Margin (TTM)

MSGS

-2.16%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

MSGS has a negative Net Profit Margin of -2.16%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

WMG

4.59%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

Falling into the lower quartile for the Entertainment industry, WMG’s Net Profit Margin of 4.59% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

MSGS vs. WMG: A comparison of their Net Profit Margin (TTM) against the Entertainment industry benchmark.

Operating Profit Margin (TTM)

MSGS

1.42%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

MSGS’s Operating Profit Margin of 1.42% is in the lower quartile for the Entertainment industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

WMG

10.73%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

WMG’s Operating Profit Margin of 10.73% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

MSGS vs. WMG: A comparison of their Operating Profit Margin (TTM) against the Entertainment industry benchmark.

Profitability at a Glance

SymbolMSGSWMG
Return on Equity (TTM)-6.84%53.54%
Return on Assets (TTM)-1.56%3.16%
Net Profit Margin (TTM)-2.16%4.59%
Operating Profit Margin (TTM)1.42%10.73%
Gross Profit Margin (TTM)33.84%46.64%

Financial Strength

Current Ratio (MRQ)

MSGS

0.45

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

MSGS’s Current Ratio of 0.45 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

WMG

0.66

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

WMG’s Current Ratio of 0.66 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MSGS vs. WMG: A comparison of their Current Ratio (MRQ) against the Entertainment industry benchmark.

Debt-to-Equity Ratio (MRQ)

MSGS

0.15

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

MSGS’s Debt-to-Equity Ratio of 0.15 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

WMG

7.41

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

With a Debt-to-Equity Ratio of 7.41, WMG operates with exceptionally high leverage compared to the Entertainment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

MSGS vs. WMG: A comparison of their Debt-to-Equity Ratio (MRQ) against the Entertainment industry benchmark.

Interest Coverage Ratio (TTM)

MSGS

0.29

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

MSGS’s Interest Coverage Ratio of 0.29 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.

WMG

4.73

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

WMG’s Interest Coverage Ratio of 4.73 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.

MSGS vs. WMG: A comparison of their Interest Coverage Ratio (TTM) against the Entertainment industry benchmark.

Financial Strength at a Glance

SymbolMSGSWMG
Current Ratio (MRQ)0.450.66
Quick Ratio (MRQ)0.370.45
Debt-to-Equity Ratio (MRQ)0.157.41
Interest Coverage Ratio (TTM)0.294.73

Growth

Revenue Growth

MSGS vs. WMG: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MSGS vs. WMG: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MSGS

0.01%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

MSGS’s Dividend Yield of 0.01% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

WMG

2.42%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.42%, WMG offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.

MSGS vs. WMG: A comparison of their Dividend Yield (TTM) against the Entertainment industry benchmark.

Dividend Payout Ratio (TTM)

MSGS

0.33%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

MSGS’s Dividend Payout Ratio of 0.33% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

WMG

82.30%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

WMG’s Dividend Payout Ratio of 82.30% is in the upper quartile for the Entertainment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

MSGS vs. WMG: A comparison of their Dividend Payout Ratio (TTM) against the Entertainment industry benchmark.

Dividend at a Glance

SymbolMSGSWMG
Dividend Yield (TTM)0.01%2.42%
Dividend Payout Ratio (TTM)0.33%82.30%

Valuation

Price-to-Earnings Ratio (TTM)

MSGS

--

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

P/E Ratio data for MSGS is currently unavailable.

WMG

52.44

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

A P/E Ratio of 52.44 places WMG in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MSGS vs. WMG: A comparison of their Price-to-Earnings Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Sales Ratio (TTM)

MSGS

4.52

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

MSGS’s P/S Ratio of 4.52 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

WMG

2.41

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

In the lower quartile for the Entertainment industry, WMG’s P/S Ratio of 2.41 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

MSGS vs. WMG: A comparison of their Price-to-Sales Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Book Ratio (MRQ)

MSGS

1.98

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

MSGS’s P/B Ratio of 1.98 is in the lower quartile for the Entertainment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

WMG

24.11

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

At 24.11, WMG’s P/B Ratio is at an extreme premium to the Entertainment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

MSGS vs. WMG: A comparison of their Price-to-Book Ratio (MRQ) against the Entertainment industry benchmark.

Valuation at a Glance

SymbolMSGSWMG
Price-to-Earnings Ratio (TTM)--52.44
Price-to-Sales Ratio (TTM)4.522.41
Price-to-Book Ratio (MRQ)1.9824.11
Price-to-Free Cash Flow Ratio (TTM)41.0126.81