Comparing Liberty Live Group (NASDAQ:LLYVA) and Formula One Group (NASDAQ:FWONA)

Liberty Live Group (NASDAQ:LLYVA – Get Free Report) and Formula One Group (NASDAQ:FWONA – Get Free Report) are both notable companies in their respective sectors. However, the question remains: which of these two is the better investment option? This article aims to compare Liberty Live Group and Formula One Group by examining several critical factors. These factors include institutional ownership, analyst recommendations, valuation metrics, profitability, dividends, earnings performance, and risk factors.

Earnings and Valuation

When comparing the earnings and valuation of Liberty Live Group and Formula One Group, it is essential to look at key metrics such as gross revenue, earnings per share (EPS), and various price ratios. Below is a summarized comparison:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Live Group	N/A	N/A	N/A	($0.34)	-194.12
Formula One Group	$3.65 billion	5.48	-$32.40 million	($0.13)	-618.08

From this data, it is evident that while Liberty Live Group has higher earnings, Formula One Group boasts significantly higher revenue. Additionally, the price-to-earnings ratio for Formula One Group is lower, suggesting it may currently offer a more attractive valuation compared to Liberty Live Group.

Volatility & Risk

In terms of market volatility, Liberty Live Group exhibits a beta of 1.54. This means it is 54% more volatile than the S&P 500, which may suggest a higher risk profile. On the other hand, Formula One Group has a beta of 0.15, indicating that it is significantly less volatile—about 85% less so than the S&P 500—indicating a potentially safer investment choice.

Insider and Institutional Ownership

Institutional ownership can signal investor confidence in a company's future growth prospects. For Liberty Live Group, 25.1% of shares are held by institutional investors. In contrast, only 8.4% of Formula One Group's shares are held by institutional investors. Additionally, 4.8% of Formula One Group shares are owned by company insiders. A higher percentage of institutional ownership typically indicates that large investors believe a company's stock may appreciate over time.

Profitability

Assessing profitability can provide insights into a company's financial health. Below is a summarized comparison of net margins, return on equity (ROE), and return on assets (ROA) for both companies:

	Net Margins	Return on Equity	Return on Assets
Liberty Live Group	N/A	N/A	N/A
Formula One Group	N/A	N/A	N/A

Both companies do not provide specific data regarding their net margins or returns on equity and assets, making it difficult to draw direct conclusions about their profitability based on this data.

Analyst Ratings

Analyzing the recommendations made by market analysts can also shed light on the potential future performance of these stocks. Here is a summary of recent ratings:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Live Group	0	0	0	0	0.00
Formula One Group	1	0	3	1	2.80

Formula One Group has a consensus target price of $82.33, which indicates a potential upside of 2.47%. Given its superior ratings and higher expected upside, analysts seem to favor Formula One Group over Liberty Live Group.

Summary

In summary, Formula One Group outperforms Liberty Live Group in 8 of the 10 evaluated factors, indicating that it may be the more appealing investment option at this time.

About Liberty Live Group

Liberty Live Group operates primarily in the media, communications, and entertainment sectors across North America and the United Kingdom, with its headquarters located in Englewood, Colorado.

About Formula One Group

Formula One Group, through its subsidiary Formula 1, is heavily involved in the global motorsports industry. It holds the commercial rights to the FIA Formula One World Championship, a significant event featuring numerous teams competing for prestigious titles. Formula One Group is also engaged in operating the Formula 1 Paddock Club hospitality program and provides various logistical services for participating teams. Founded in 1950, it is also based in Englewood, Colorado, as a subsidiary of Liberty Media Corporation.

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