Formula One Group (NASDAQ:FWONK – Get Free Report) and Liberty Live Group (NASDAQ:LLYVK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Profitability
This table compares Formula One Group and Liberty Live Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Formula One Group | N/A | N/A | N/A |
| Liberty Live Group | N/A | N/A | N/A |
Volatility & Risk
Formula One Group has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Liberty Live Group has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Formula One Group | $3.65 billion | 5.49 | -$32.40 million | ($0.13) | -619.23 |
| Liberty Live Group | N/A | N/A | N/A | ($0.34) | -189.29 |
Liberty Live Group has lower revenue, but higher earnings than Formula One Group. Formula One Group is trading at a lower price-to-earnings ratio than Liberty Live Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.3% of Formula One Group shares are held by institutional investors. Comparatively, 60.4% of Liberty Live Group shares are held by institutional investors. 4.3% of Formula One Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations for Formula One Group and Liberty Live Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Formula One Group | 1 | 1 | 4 | 1 | 2.71 |
| Liberty Live Group | 0 | 0 | 0 | 0 | 0.00 |
Formula One Group currently has a consensus price target of $95.33, indicating a potential upside of 18.43%. Given Formula One Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Formula One Group is more favorable than Liberty Live Group.
Summary
Formula One Group beats Liberty Live Group on 9 of the 10 factors compared between the two stocks.
About Formula One Group
Formula One Group, through its subsidiary Formula 1, engages in the motorsports business in the United States and internationally. The company holds commercial rights for the FIA Formula One world championship, approximately a nine-month long motor race-based competition in which teams compete for the constructors' championship and drivers compete for the drivers' championship. It is also involved in the operation of the Formula 1 Paddock Club hospitality program; and provision of freight, logistical, and travel related services for the teams and other third parties, as well as the F2 and F3 race series. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group operates as a subsidiary of Liberty Media Corporation.
About Liberty Live Group
Liberty Live Group operates in the media, communications, and entertainment industries primarily in North America and the United Kingdom. The company is headquartered in Englewood, Colorado.
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