Critical Analysis: TKO Group (TKO) & Its Peers

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

Profitability

This table compares TKO Group and its rivals’ 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%

Risk and Volatility

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
TKO Group	$1.29 billion	$195.59 million	60.85
TKO Group Competitors	$778.40 million	$38.82 million	-18.44

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

Analyst Ratings

This is a summary of recent ratings and price targets for TKO Group and its rivals, as provided 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 currently has a consensus price target of $111.60, suggesting a potential upside of 42.66%. As a group, “Amusement & recreation services” companies have a potential upside of 29.74%. Given TKO Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe TKO Group is more favorable than its rivals.

Institutional & Insider Ownership

66.3% of TKO Group shares are owned by institutional investors. Comparatively, 27.2% of shares of all “Amusement & recreation services” companies are owned by institutional investors. 38.9% of TKO Group shares are owned by company insiders. Comparatively, 32.0% of shares of all “Amusement & recreation services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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 rivals 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.