Paramount Skydance (NASDAQ:PSKY – Get Free Report) and Sphere Entertainment (NYSE:SPHR – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Paramount Skydance and Sphere Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paramount Skydance | -2.13% | 4.11% | 1.21% |
| Sphere Entertainment | -6.19% | -1.38% | -0.74% |
Volatility & Risk
Paramount Skydance has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Sphere Entertainment has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paramount Skydance | 9 | 5 | 4 | 0 | 1.72 |
| Sphere Entertainment | 1 | 1 | 12 | 0 | 2.79 |
Paramount Skydance currently has a consensus target price of $11.17, indicating a potential upside of 17.54%. Sphere Entertainment has a consensus target price of $166.00, indicating a potential upside of 29.42%. Given Sphere Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Sphere Entertainment is more favorable than Paramount Skydance.
Institutional & Insider Ownership
73.0% of Paramount Skydance shares are held by institutional investors. Comparatively, 92.0% of Sphere Entertainment shares are held by institutional investors. 0.4% of Paramount Skydance shares are held by insiders. Comparatively, 22.1% of Sphere Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Paramount Skydance and Sphere Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paramount Skydance | $28.76 billion | 0.37 | -$621.00 million | $0.29 | 32.76 |
| Sphere Entertainment | $1.22 billion | 3.78 | $33.40 million | ($2.68) | -47.86 |
Sphere Entertainment has lower revenue, but higher earnings than Paramount Skydance. Sphere Entertainment is trading at a lower price-to-earnings ratio than Paramount Skydance, indicating that it is currently the more affordable of the two stocks.
Summary
Sphere Entertainment beats Paramount Skydance on 8 of the 14 factors compared between the two stocks.
About Paramount Skydance
Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.
About Sphere Entertainment
Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates entertainment dining and nightlife venues markets under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.
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