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Summary

  • This year's Stanley Cup Finals are generating big ratings numbers.
  • Sporting sponsorships are big advertising opportunities for corporations.
  • NHL sponsors may see a boost from the high profile nature of this year's event.

Game 4 of the Stanley Cup Finals at Madison Square Garden saw the New York Rangers come back from a three game deficit 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 Monday night 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 (NASDAQ:CMCSA) last week. In fact, Saturday's Game 2 was the most-watched Game 2 on record.

Sport Media Watch reports New York's win over LA in game 4 was the second-highest rated game 4 in the last decade. The Kings-Rangers battle for the championship not only pits the nation's biggest city against its second-biggest city, 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 shareholders' equity, which also excludes preferred shares.

We were left with 9 stocks on our list.

1. BCE, Inc. (NYSE:BCE): 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 ((NYSE:TTM)) at 18.18% vs. an industry average of -3.24%.

Bell Canada is an NHL sponsor.

2. The Bank of Nova Scotia (NYSE:BNS): 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 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 (NASDAQ:CZR): 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 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.

Click here for the full, interactive chart.

4. Hershey Co. (NYSE:HSY): 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 at 58.72% vs. an industry average of 32.86%.

Hershey's Canada is a sponsor of the NHL.

5. Kraft Foods Group, Inc. (NASDAQ:KRFT): 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 at 56.44% vs. industry average of 32.86%

Kraft Canada is a sponsor of the NHL.

6. McDonald's Corp. (NYSE:MCD): 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 at 35.34% vs. industry average of -11.16%.

McDonald's is a sponsor of the NHL.

Click here for the full, interactive chart.

7. Royal Caribbean Cruises Ltd. (NYSE:RCL): 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 at 4.88% vs. industry average of -11.15%

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

8. Tim Hortons Inc. (NYSE:THI): 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 at 47.63% vs. industry average of -11.16%

Tim Hortons is a sponsor of the NHL.

9. Verizon Communications Inc. (NYSE:VZ): 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 at 44.75% vs. industry average of -3.24%

Verizon is a sponsor of the NHL.

Click here for the full, interactive chart.

Source: These NHL Sponsors May Have Scored Big With The Stanley Cup Finals