Critical Analysis: Falcon’s Beyond Global (NASDAQ:FBYD) & Madison Square Garden Entertainment (NYSE:MSGE)

Falcon’s Beyond Global (NASDAQ:FBYD) and Madison Square Garden Entertainment (NYSE:MSGE) are both small-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Profitability

This table compares Falcon’s Beyond Global and Madison Square Garden Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Falcon’s Beyond Global	N/A	N/A	N/A
Madison Square Garden Entertainment	5.74%	-53.05%	4.72%

Valuation and Earnings

This table compares Falcon’s Beyond Global and Madison Square Garden Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Falcon’s Beyond Global	$18.24 million	87.84	-$47.60 million	N/A	N/A
Madison Square Garden Entertainment	$851.50 million	1.60	$76.60 million	$1.18	28.03

Madison Square Garden Entertainment has higher revenue and earnings than Falcon’s Beyond Global.

Institutional and Insider Ownership

38.9% of Falcon’s Beyond Global shares are held by institutional investors. Comparatively, 96.9% of Madison Square Garden Entertainment shares are held by institutional investors. 18.7% of Madison Square Garden Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Falcon’s Beyond Global and Madison Square Garden Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Falcon’s Beyond Global	0	0	0	0	N/A
Madison Square Garden Entertainment	0	2	2	0	2.50

Madison Square Garden Entertainment has a consensus price target of $39.00, suggesting a potential upside of 17.90%. Given Madison Square Garden Entertainment’s higher probable upside, analysts clearly believe Madison Square Garden Entertainment is more favorable than Falcon’s Beyond Global.

Summary

Madison Square Garden Entertainment beats Falcon’s Beyond Global on 8 of the 10 factors compared between the two stocks.

About Falcon’s Beyond Global

Falcon's Beyond Global, Inc. operates as an entertainment company in the United States, Saudi Arabia, Caribbean, Hong Kong, and internationally. The company creates master plans; designs attractions and experiential entertainment; and produces content, interactives, and software, as well as engages in media and audio production, project management, experiential technologies, and attraction hardware development, procurement, and sales. It also develops a diverse range of entertainment experiences using owned and third party licensed intellectual property, spanning location-based entertainment, dining, and retail; and engages in animation, movies, licensing and merchandising, and gaming, as well as ride and technology sales. In addition, the company develops, owns, and operates resort hotels, theme parks, attractions, retail, dining, and location-based entertainment venues; and operates an online gift shop. The company is headquartered in Orlando, Florida.

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.