Comparing Sphere Entertainment (NYSE:SPHR) & Sound Group (NASDAQ:SOGP)

Sound Group (NASDAQ:SOGP) and Sphere Entertainment (NYSE:SPHR) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

1.6% of Sound Group shares are owned by institutional investors. Comparatively, 92.0% of Sphere Entertainment shares are owned by institutional investors. 25.2% of Sound Group shares are owned by company insiders. Comparatively, 22.1% of Sphere Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Sound Group has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500. Comparatively, Sphere Entertainment has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares Sound Group and Sphere Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Group	N/A	N/A	N/A
Sphere Entertainment	-6.19%	-1.38%	-0.74%

Valuation and Earnings

This table compares Sound Group and Sphere Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Group	$443.69 million	0.08	$32.39 million	($1.51)	-7.37
Sphere Entertainment	$1.36 billion	2.89	$33.40 million	($2.68)	-40.69

Sphere Entertainment has higher revenue and earnings than Sound Group. Sphere Entertainment is trading at a lower price-to-earnings ratio than Sound Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Sound Group and Sphere Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Group	0	1	0	0	2.00
Sphere Entertainment	1	2	11	0	2.71

Sphere Entertainment has a consensus target price of $160.93, suggesting a potential upside of 47.58%. Given Sphere Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Sphere Entertainment is more favorable than Sound Group.

About Sound Group

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.

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.