Madison Square Garden (NYSE:MSGS) vs. Airbnb (NASDAQ:ABNB) Head to Head Analysis

Madison Square Garden (NYSE:MSGS) and Airbnb (NASDAQ:ABNB) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Insider & Institutional Ownership

68.9% of Madison Square Garden shares are held by institutional investors. Comparatively, 80.8% of Airbnb shares are held by institutional investors. 19.1% of Madison Square Garden shares are held by insiders. Comparatively, 27.2% of Airbnb shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Madison Square Garden and Airbnb”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madison Square Garden	$1.04 billion	7.61	-$22.44 million	($0.69)	-476.42
Airbnb	$12.24 billion	7.04	$2.51 billion	$4.06	34.85

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

Volatility and Risk

Madison Square Garden has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Airbnb has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Madison Square Garden	-2.07%	N/A	-1.39%
Airbnb	19.90%	31.24%	10.16%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Madison Square Garden and Airbnb, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madison Square Garden	0	6	3	0	2.33
Airbnb	1	13	21	2	2.65

Madison Square Garden presently has a consensus target price of $333.80, suggesting a potential upside of 1.54%. Airbnb has a consensus target price of $157.17, suggesting a potential upside of 11.08%. Given Airbnb’s stronger consensus rating and higher probable upside, analysts plainly believe Airbnb is more favorable than Madison Square Garden.

Summary

Airbnb beats Madison Square Garden on 14 of the 15 factors compared between the two stocks.

About Madison Square Garden

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 Airbnb

Airbnb, Inc., together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company’s marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.