Pearson (NYSE:PSO – Get Free Report) and Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.
Valuation & Earnings
This table compares Pearson and Liberty Media Corporation – Liberty Formula One Series A”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pearson | $4.54 billion | 2.13 | $554.61 million | $0.94 | 15.82 |
| Liberty Media Corporation – Liberty Formula One Series A | $3.32 billion | 6.95 | $254.43 million | $1.02 | 90.65 |
Profitability
This table compares Pearson and Liberty Media Corporation – Liberty Formula One Series A’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pearson | N/A | N/A | N/A |
| Liberty Media Corporation – Liberty Formula One Series A | N/A | N/A | N/A |
Institutional and Insider Ownership
2.1% of Pearson shares are held by institutional investors. Comparatively, 8.4% of Liberty Media Corporation – Liberty Formula One Series A shares are held by institutional investors. 0.1% of Pearson shares are held by company insiders. Comparatively, 3.0% of Liberty Media Corporation – Liberty Formula One Series A shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Pearson has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Liberty Media Corporation – Liberty Formula One Series A has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Pearson and Liberty Media Corporation – Liberty Formula One Series A, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pearson | 0 | 1 | 1 | 1 | 3.00 |
| Liberty Media Corporation – Liberty Formula One Series A | 1 | 1 | 3 | 2 | 2.86 |
Pearson presently has a consensus target price of $18.00, indicating a potential upside of 21.06%. Liberty Media Corporation – Liberty Formula One Series A has a consensus target price of $103.00, indicating a potential upside of 11.40%. Given Pearson’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Pearson is more favorable than Liberty Media Corporation – Liberty Formula One Series A.
Summary
Liberty Media Corporation – Liberty Formula One Series A beats Pearson on 7 of the 12 factors compared between the two stocks.
About Pearson
Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.
About Liberty Media Corporation – Liberty Formula One Series A
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.
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