Better Stock Buy - WWE or MSG?

Stock analysis website SmallCapNetwork.com published a comparison of WWE and Madison Square Garden stocks centered around the rise of New York Knicks player Jeremy Lin.

What has always attracted investor attention to the World Wrestling Entertainment is its high dividend yield. In fact, World Wrestling Entertainment has a five year average dividend yield of 9% and it has a dividend payout ratio of 175% – hardly sustainable which explains why the stock has a 4.9% forward dividend yield after the quarterly dividend was slashed from $0.36 to $0.12 early last year. Another concern for investors: Vincent or “Vince” McMahon, the Chairman, CEO and sometimes even a ring participant is the embodiment of the company but he will not stay at the helm forever. Nevertheless, his daughter appears more than capable of taking over the helm at some point in time but again, an investment in World Wrestling Entertainment is an investment in Vincent McMahon and the McMahon family. Nevertheless, World Wrestling Entertainment has managed to remain profitable in a turbulent economy, producing net income of $53,452k (2010), $50,303k (2009) and $45,416k (2008) plus it has a gold mine of content that it can better leverage into further profits. Hence, I would not rule the stock out just because they have decided to cut back on dividends.

The Bottom Line. With or without Jeremy Lin and Vince McMahon, Madison Square Garden (MSG) and World Wrestling Entertainment (WWE) probably have what it takes to at least deserve further investor attention...More?

partial source: pwtorch.com