Financial Review: Six Flags Entertainment (NYSE:SIX) & Madison Square Garden Entertainment (NYSE:MSGE)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Madison Square Garden Entertainment	5.74%	-53.05%	4.72%
Six Flags Entertainment	1.84%	-6.61%	2.28%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madison Square Garden Entertainment	$851.50 million	1.72	$76.60 million	$1.18	30.20
Six Flags Entertainment	$1.42 billion	1.55	$39.00 million	$0.32	81.22

Madison Square Garden Entertainment has higher earnings, but lower revenue than Six Flags Entertainment. Madison Square Garden Entertainment is trading at a lower price-to-earnings ratio than Six Flags Entertainment, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

96.9% of Madison Square Garden Entertainment shares are owned by institutional investors. Comparatively, 98.0% of Six Flags Entertainment shares are owned by institutional investors. 18.7% of Madison Square Garden Entertainment shares are owned by insiders. Comparatively, 0.5% of Six Flags Entertainment shares are owned 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 and recommmendations for Madison Square Garden Entertainment and Six Flags Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madison Square Garden Entertainment	0	3	3	0	2.50
Six Flags Entertainment	2	3	7	0	2.42

Madison Square Garden Entertainment currently has a consensus price target of $39.83, suggesting a potential upside of 11.77%. Six Flags Entertainment has a consensus price target of $28.00, suggesting a potential upside of 7.73%. Given Madison Square Garden Entertainment’s stronger consensus rating and higher possible upside, equities analysts plainly believe Madison Square Garden Entertainment is more favorable than Six Flags Entertainment.

Summary

Madison Square Garden Entertainment beats Six Flags Entertainment on 8 of the 13 factors compared between the two stocks.

About Madison Square Garden Entertainment

Madison Square Garden Entertainment Corp. engages in live entertainment business. The company produces, presents, and hosts live entertainment events, including concerts, sports events, and other live events, such as family shows, performing arts events, and special events. Its operations include a collection of venues, the entertainment and sports bookings business, and the Christmas Spectacular Starring the Radio City Rockettes production. The company was formerly known as MSGE Spinco, Inc. Madison Square Garden Entertainment Corp. was incorporated in 2022 and is based in New York, New York.

About Six Flags Entertainment

Six Flags Entertainment Corporation owns and operates regional theme and waterparks under the Six Flags name. Its parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. The company sells food, beverages, merchandise, and other products and services within its parks. It operates parks in the United States, Mexico, and Canada. The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1961 and is based in Arlington, Texas.