Reviewing SFX Entertainment (SFXE) and Six Flags Entertainment Corporation New (SIX)

Six Flags Entertainment Corporation New (NYSE: SIX) and SFX Entertainment (NASDAQ:SFXE) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitabiliy and analyst recommendations.

Profitability

This table compares Six Flags Entertainment Corporation New and SFX Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Six Flags Entertainment Corporation New 8.26% -89.39% 4.24%
SFX Entertainment -40.71% -171.49% -32.21%

Institutional and Insider Ownership

88.2% of Six Flags Entertainment Corporation New shares are owned by institutional investors. 6.9% of Six Flags Entertainment Corporation New shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Six Flags Entertainment Corporation New pays an annual dividend of $2.56 per share and has a dividend yield of 4.4%. SFX Entertainment does not pay a dividend. Six Flags Entertainment Corporation New pays out 226.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Six Flags Entertainment Corporation New has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Six Flags Entertainment Corporation New and SFX Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Six Flags Entertainment Corporation New 0 3 8 0 2.73
SFX Entertainment 0 0 0 0 N/A

Six Flags Entertainment Corporation New presently has a consensus price target of $65.50, indicating a potential upside of 12.10%. Given Six Flags Entertainment Corporation New’s higher probable upside, equities analysts plainly believe Six Flags Entertainment Corporation New is more favorable than SFX Entertainment.

Valuation & Earnings

This table compares Six Flags Entertainment Corporation New and SFX Entertainment’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Six Flags Entertainment Corporation New $1.30 billion 4.07 $406.63 million $1.13 51.71
SFX Entertainment N/A N/A N/A N/A N/A

Six Flags Entertainment Corporation New has higher revenue and earnings than SFX Entertainment.

Summary

Six Flags Entertainment Corporation New beats SFX Entertainment on 10 of the 11 factors compared between the two stocks.

Six Flags Entertainment Corporation New Company Profile

Six Flags Entertainment Corporation (Six Flags) is a regional theme park operator. The Company operates in the theme parks segment. The Company operates approximately 19 regional theme and water parks. Its parks occupy approximately 4,500 acres of land. Its parks are located in geographically diverse markets across North America. Its parks offer a selection of thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues and retail outlets. Its parks offer approximately 830 rides, including over 135 roller coasters. The Company’s parks include Six Flags America, Six Flags Discovery Kingdom, Six Flags Fiesta Texas, Six Flags Great Adventure & Safari/ Six Flags Hurricane Harbor, Six Flags Great America, Six Flags St. Louis, Six Flags Magic Mountain/ Six Flags Hurricane Harbor, Six Flags Mexico and Six Flags New England.

SFX Entertainment Company Profile

SFX Entertainment, Inc. is engaged in creating the global platform for Electronic Music Culture. The Company is a producer of live events and digital entertainment content focused on electronic music culture (EMC) and other festivals. The Company focuses on providing electronic music fans with live experiences, music discovery, media and digital connectivity. It produces and promotes a portfolio of live events that includes brands, such as Tomorrowland, TomorrowWorld, Mysteryland, Sensation, Electric Zoo, Disco Donnie Presents, Life in Color, Rock in Rio, Nature One, Mayday, Decibel, Q-Dance, Awakenings, and React Presents, as well as the ticketing service Paylogic. It also owns and operates Beatport, the global home of electronic music where fans, disc jockeys (DJs), and creators connect, discover, and participate in the evolution of dance music culture. Its ID&T is an international dance music event producer operating in approximately 20 Countries and over four Continents.

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