Critical Review: Madison Square Garden Entertainment (NYSE:MSGE) versus Archon (OTCMKTS:ARHN)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madison Square Garden Entertainment	$894.04 million	1.74	$76.60 million	$1.54	24.57
Archon	N/A	N/A	N/A	N/A	N/A

Madison Square Garden Entertainment has higher revenue and earnings than Archon.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Madison Square Garden Entertainment	0	3	4	0	2.57
Archon	0	0	0	0	N/A

Madison Square Garden Entertainment currently has a consensus target price of $39.83, indicating a potential upside of 5.27%. Given Madison Square Garden Entertainment’s higher probable upside, analysts clearly believe Madison Square Garden Entertainment is more favorable than Archon.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Madison Square Garden Entertainment	8.03%	-94.05%	5.98%
Archon	N/A	N/A	N/A

Institutional and Insider Ownership

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. Comparatively, 80.0% of Archon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Madison Square Garden Entertainment beats Archon on 6 of the 8 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 Archon

Archon Corporation, through its subsidiary, Pioneer Hotel Inc., engages in the ownership, management, and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada that consists of a casino. The company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties that include commercial office space in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.