Have these NHL sponsors scored big with the Stanley Cup Finals?

An image of a pen and a calculator Credit: Shutterstock photo

By Mary-Lynn Cesar for Kapitall.

Game 4 of the Stanley Cup Finals takes place tonight at Madison Square Garden, and it's the last chance the New York Rangers have to stay in contention to win their first cup in 20 years. Monday night's game, which saw the Los Angeles Kings defeat the Rangers 3-0, was a downer for Rangers fans and ratings alike.

Roughly 2.9 million people caught the game on NBC Sports Network, declining significantly from the 4.78 million and 6.4 million viewers who watched Games 1 and 2, respectively, on NBC ( CMCSA ) last week. In fact, Saturday's Game 2 was the most-watched Game 2 on record.

Yet, The Hollywood Reporterhad predicted that ratings were expected to rise for last night's game, which could see the Kings win the cup or the Rangers possibly begin the impressive feat of winning four games back-to-back. And while the Kings-Rangers battle for the championship pits New York against Los Angeles, it also combines the nation's two largest TV markets, resulting in a massive hit for NBC and NHL sponsors alike.

The finals have also seen fans-Rangers fans, in particular-spending lots of money to experience the games firsthand. According to Bloomberg , Rangers fans spent an average $1640 on a ticket to Game 3. Resale ticket prices have been so high that it would have actually been cheaper for Rangers fans to fly out to Los Angeles for Games 1 or 2 than to grab a ticket for Games 3 or 4.

The record ratings and ticket prices inspired us to take a closer look at companies associated with the Stanley Cup Finals. We began with a list of companies that sponsor the NHL , Los Angeles Kings , New York Rangers , along with firms with a marketing relationship with Madison Square Garden (the location for Games 3 and 4). Then we screened that group of stocks for companies with a return on equity (ROE) higher than the industry average .

ROE is a profitability metric that illustrates the amount of profit a company has generated with the money its shareholders have invested. It's expressed as a percentage and is calculated by dividing net income, fiscal year profit minus dividends paid to preferred stock, by shareholder's equity, which also excludes preferred shares.

We were left with 9 stocks on our list.

Click on the interactive chart to view data over time.

1. BCE, Inc. ( BCE , Earnings , Analysts , Financials ): Provides wireline voice and wireless communications services, Internet access, data services, and video services to residential, business, and wholesale customers in Canada. Market cap at $35.92B, most recent closing price at $46.29.

ROE (MRQ, Annualized) at 22.26% vs. industry average of 20.57%.

ROE ( TTM ) at 18.18% vs. an industry average of -3.24%.

Bell Canada is an NHL sponsor.

2. The Bank of Nova Scotia ( BNS , Earnings , Analysts , Financials ): Together with its subsidiaries, offers various personal, commercial, corporate, and investment banking services in Canada and internationally. Market cap at $79.06B, most recent closing price at $64.95.

ROE (MRQ, Annualized) at 16.29% vs. industry average of 10.74%.

ROE ( TTM ) at 16.30% vs. industry average at 9.18%

The Bank of Nova Scotia, commonly referred to as Scotiabank, is a sponsor of the NHL.

3. Caesars Entertainment Corporation ( CZR , Earnings , Analysts , Financials ): Owns, operates, or manages casino entertainment facilities. Market cap at $2.61B, most recent closing price at $18.14.

ROE (MRQ, Annualized) at 42.32% vs. industry average of -32.14%.

ROE ( TTM ) at 137.51% vs. industry average of -11.15%

Online gambling website WSOP.com, which is owned by Caesars, recently became a sponsor of the New York Rangers.

4. Hershey Co. ( HSY , Earnings , Analysts , Financials ): Engages in manufacturing, marketing, selling, and distributing various chocolate and confectionery products, pantry items, and gum and mint refreshment products worldwide. Market cap at $21.57B, most recent closing price at $97.03.

ROE (MRQ, Annualized) at 62.91% vs. industry average of 35.62%.

ROE ( TTM ) at 58.72% vs. an industry average of 32.86%.

Hershey's Canada is a sponsor of the NHL.

5. Kraft Foods Group, Inc. ( KRFT , Earnings , Analysts , Financials ): Operates as a consumer packaged food and beverage company across the globe. Market cap at $35.45B, most recent closing price at $59.93

ROE (MRQ, Annualized) at 38.67% vs. industry average of 35.62%.

ROE ( TTM ) at 56.44% vs. industry average of 32.86%

Kraft Canada is a sponsor of the NHL.

6. McDonald's Corp. ( MCD , Earnings , Analysts , Financials ): Operates as a foodservice retailer worldwide. Market cap at $99.49B, most recent closing price at $100.88

ROE (MRQ, Annualized) at 29.84% vs. an industry average at -32.15%.

ROE ( TTM ) at 35.34% vs. industry average of -11.16%.

McDonald's is a sponsor of the NHL.

7. Royal Caribbean Cruises Ltd. ( RCL , Earnings , Analysts , Financials ): Operates in the cruise vacation industry worldwide. Market cap at $12.68B, most recent closing price at $57.12.

ROE (MRQ, Annualized) at 1.21% vs. industry average of -32.14%.

ROE ( TTM ) at 4.88% vs. industry average of -11.15%

Sister bramd Celebrity Cruises is a sponsor of the New York Rangers.

8. Tim Hortons Inc. ( THI , Earnings , Analysts , Financials ): Develops, franchises, and operates quick service restaurants primarily in Canada and the United States. Market cap at $7.36B, most recent closing price at $54.85.

ROE (MRQ, Annualized) at 71.82% vs. industry average of -32.15%.

ROE ( TTM ) at 47.63% vs. industry average of -11.16%

Tim Hortons is a sponsor of the NHL.

9. Verizon Communications Inc. ( VZ , Earnings , Analysts , Financials ): Provides communication services. Market cap at $204.53B, most recent closing price at $49.52.

ROE (MRQ, Annualized) at 124.21% vs. industry average of 20.57%.

ROE ( TTM ) at 44.75% vs. industry average of -3.24%

Verizon is a sponsor of the NHL.

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. Return on equity data sourced from Fidelity. All other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.