Analyzing AFC Ajax (OTCMKTS:AFCJF) & Madison Square Garden Sports (NYSE:MSGS)

Madison Square Garden Sports (NYSE:MSGS) and AFC Ajax (OTCMKTS:AFCJF) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Institutional and Insider Ownership

68.9% of Madison Square Garden Sports shares are held by institutional investors. 22.3% of Madison Square Garden Sports shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Madison Square Garden Sports and AFC Ajax’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madison Square Garden Sports	$1.03 billion	4.88	$47.79 million	$0.98	213.55
AFC Ajax	N/A	N/A	N/A	$0.99	12.53

Madison Square Garden Sports has higher revenue and earnings than AFC Ajax. AFC Ajax is trading at a lower price-to-earnings ratio than Madison Square Garden Sports, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Madison Square Garden Sports and AFC Ajax, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madison Square Garden Sports	0	0	1	0	3.00
AFC Ajax	0	0	0	0	N/A

Madison Square Garden Sports presently has a consensus target price of $235.00, suggesting a potential upside of 12.29%. Given Madison Square Garden Sports’ higher probable upside, equities analysts plainly believe Madison Square Garden Sports is more favorable than AFC Ajax.

Profitability

This table compares Madison Square Garden Sports and AFC Ajax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Madison Square Garden Sports	2.59%	-7.23%	1.77%
AFC Ajax	N/A	N/A	N/A

Summary

Madison Square Garden Sports beats AFC Ajax on 8 of the 10 factors compared between the two stocks.

About Madison Square Garden Sports

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 AFC Ajax

AFC Ajax NV operates a football club primarily in the Netherlands. It also operates a stadium and an youth academy. The company was founded in 1900 and is based in Amsterdam, the Netherlands.