Contrasting TKO Group (TKO) & Its Rivals

TKO Group (NYSE:TKO) is one of 35 publicly-traded companies in the “Amusement & recreation services” industry, but how does it compare to its peers? We will compare TKO Group to related companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

66.3% of TKO Group shares are held by institutional investors. Comparatively, 27.2% of shares of all “Amusement & recreation services” companies are held by institutional investors. 38.9% of TKO Group shares are held by insiders. Comparatively, 32.0% of shares of all “Amusement & recreation services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for TKO Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TKO Group	0	0	6	0	3.00
TKO Group Competitors	18	125	300	4	2.65

TKO Group presently has a consensus target price of $111.60, indicating a potential upside of 42.49%. As a group, “Amusement & recreation services” companies have a potential upside of 28.77%. Given TKO Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TKO Group is more favorable than its peers.

Profitability

This table compares TKO Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TKO Group	7.12%	7.37%	4.76%
TKO Group Competitors	-27.10%	-23.37%	-13.72%

Valuation and Earnings

This table compares TKO Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TKO Group	$1.29 billion	$195.59 million	60.71
TKO Group Competitors	$761.62 million	$38.82 million	-18.48

TKO Group has higher revenue and earnings than its peers. TKO Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

TKO Group has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, TKO Group’s peers have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.

Dividends

TKO Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.5%. TKO Group pays out 27.9% of its earnings in the form of a dividend. As a group, “Amusement & recreation services” companies pay a dividend yield of 0.9% and pay out 60.9% of their earnings in the form of a dividend.

Summary

TKO Group beats its peers on 12 of the 15 factors compared.

About TKO Group

TKO Group Holdings, Inc. operates as a sports and entertainment company. It operates through four segments: Media and Content, Live Events, Sponsorships, and Consumer Products Licensing. The company produces live events, television programs, and long-form and short-form video content across various platforms, including broadcast, pay television, and streaming, as well as digital and social media across approximately 170 countries. 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. 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. TKO Group Holdings, Inc. is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.