Sphere Entertainment (NYSE:SPHR – Get Free Report) and Cedar Fair (NYSE:FUN – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Volatility and Risk
Sphere Entertainment has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Cedar Fair has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Profitability
This table compares Sphere Entertainment and Cedar Fair’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sphere Entertainment | -19.54% | -9.02% | -4.63% |
| Cedar Fair | 6.80% | -23.97% | 6.70% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sphere Entertainment | 1 | 4 | 3 | 0 | 2.25 |
| Cedar Fair | 1 | 1 | 10 | 0 | 2.75 |
Sphere Entertainment currently has a consensus target price of $50.71, suggesting a potential upside of 9.39%. Cedar Fair has a consensus target price of $56.92, suggesting a potential upside of 43.98%. Given Cedar Fair’s stronger consensus rating and higher possible upside, analysts plainly believe Cedar Fair is more favorable than Sphere Entertainment.
Earnings & Valuation
This table compares Sphere Entertainment and Cedar Fair”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sphere Entertainment | $1.03 billion | 1.59 | -$200.65 million | $10.89 | 4.26 |
| Cedar Fair | $1.82 billion | 1.12 | $124.56 million | $2.43 | 16.27 |
Cedar Fair has higher revenue and earnings than Sphere Entertainment. Sphere Entertainment is trading at a lower price-to-earnings ratio than Cedar Fair, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.0% of Sphere Entertainment shares are held by institutional investors. Comparatively, 64.7% of Cedar Fair shares are held by institutional investors. 24.5% of Sphere Entertainment shares are held by company insiders. Comparatively, 1.8% of Cedar Fair shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Cedar Fair beats Sphere Entertainment on 9 of the 14 factors compared between the two stocks.
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.
About Cedar Fair
Cedar Fair, L.P. owns and operates amusement and water parks, as well as complementary resort facilities. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park in Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Paul, Minnesota; Michigan's Adventure situated near Muskegon, Michigan; Schlitterbahn Waterpark & Resort New Braunfels in New Braunfels, Texas; and Schlitterbahn Waterpark Galveston in Galveston, Texas. The company also owns and operates the Castaway Bay Indoor Waterpark Resort, Hotel Breakers, Cedar Point's Express Hotel, and Sawmill Creek Resort. Cedar Fair, L.P. was founded in 1983 and is based in Sandusky, Ohio.
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