Comparing Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB) and Lionsgate Studios (NYSE:LION)

Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB) and Lionsgate Studios (NYSE:LION) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by institutional investors. 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by company insiders. Comparatively, 9.4% of Lionsgate Studios shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Liberty Media Corporation – Liberty Formula One Series B and Lionsgate Studios”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Media Corporation – Liberty Formula One Series B	$3.32 billion	7.14	-$30.00 million	$1.02	93.14
Lionsgate Studios	$3.20 billion	0.59	-$128.50 million	($0.67)	-9.66

Liberty Media Corporation – Liberty Formula One Series B has higher revenue and earnings than Lionsgate Studios. Lionsgate Studios is trading at a lower price-to-earnings ratio than Liberty Media Corporation – Liberty Formula One Series B, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Liberty Media Corporation – Liberty Formula One Series B has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Lionsgate Studios has a beta of -0.25, indicating that its share price is 125% less volatile than the S&P 500.

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series B and Lionsgate Studios’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Media Corporation – Liberty Formula One Series B	7.76%	N/A	N/A
Lionsgate Studios	-6.19%	N/A	-1.83%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Liberty Media Corporation – Liberty Formula One Series B and Lionsgate Studios, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series B	0	0	0	0	0.00
Lionsgate Studios	0	4	6	1	2.73

Lionsgate Studios has a consensus target price of $8.83, indicating a potential upside of 36.53%. Given Lionsgate Studios’ stronger consensus rating and higher possible upside, analysts plainly believe Lionsgate Studios is more favorable than Liberty Media Corporation – Liberty Formula One Series B.

Summary

Liberty Media Corporation – Liberty Formula One Series B beats Lionsgate Studios on 9 of the 14 factors compared between the two stocks.

About Liberty Media Corporation – Liberty Formula One Series B

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 Lionsgate Studios

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.