Madison Square Garden Entertainment (NYSE:MSGE) and Pearson (NYSE:PSO) Head to Head Contrast

Pearson (NYSE:PSO) and Madison Square Garden Entertainment (NYSE:MSGE) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Pearson and Madison Square Garden Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pearson	$3.52 billion	2.38	$554.61 million	N/A	N/A
Madison Square Garden Entertainment	$942.73 million	2.00	$37.43 million	$0.76	61.33

Pearson has higher revenue and earnings than Madison Square Garden Entertainment.

Institutional & Insider Ownership

2.1% of Pearson shares are held by institutional investors. Comparatively, 96.9% of Madison Square Garden Entertainment shares are held by institutional investors. 0.1% of Pearson shares are held by insiders. Comparatively, 16.4% of Madison Square Garden Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pearson	0	2	2	1	2.80
Madison Square Garden Entertainment	0	3	4	0	2.57

Pearson currently has a consensus target price of $18.00, suggesting a potential upside of 38.09%. Madison Square Garden Entertainment has a consensus target price of $45.50, suggesting a potential downside of 2.38%. Given Pearson’s stronger consensus rating and higher possible upside, equities analysts plainly believe Pearson is more favorable than Madison Square Garden Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pearson	N/A	N/A	N/A
Madison Square Garden Entertainment	3.65%	2,102.70%	2.76%

Risk & Volatility

Pearson has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Madison Square Garden Entertainment has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Summary

Pearson beats Madison Square Garden Entertainment on 7 of the 13 factors compared between the two stocks.

About Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.

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.