Sphere Entertainment (NYSE:SPHR – Get Free Report) and Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Volatility and Risk
Sphere Entertainment has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500. Comparatively, Liberty Media Corporation – Liberty Formula One Series B has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.
Profitability
This table compares Sphere Entertainment and Liberty Media Corporation – Liberty Formula One Series B’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sphere Entertainment | -14.68% | -19.27% | -9.85% |
| Liberty Media Corporation – Liberty Formula One Series B | 7.76% | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sphere Entertainment | 2 | 3 | 5 | 0 | 2.30 |
| Liberty Media Corporation – Liberty Formula One Series B | 0 | 0 | 0 | 0 | 0.00 |
Sphere Entertainment presently has a consensus price target of $55.13, suggesting a potential downside of 12.67%. Given Sphere Entertainment’s stronger consensus rating and higher probable upside, research analysts clearly believe Sphere Entertainment is more favorable than Liberty Media Corporation – Liberty Formula One Series B.
Institutional & Insider Ownership
92.0% of Sphere Entertainment shares are owned by institutional investors. Comparatively, 1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by institutional investors. 22.1% of Sphere Entertainment shares are owned by insiders. Comparatively, 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Sphere Entertainment and Liberty Media Corporation – Liberty Formula One Series B”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sphere Entertainment | $1.03 billion | 2.20 | -$200.65 million | ($5.32) | -11.86 |
| Liberty Media Corporation – Liberty Formula One Series B | $3.32 billion | 6.84 | -$30.00 million | $1.02 | 89.22 |
Liberty Media Corporation – Liberty Formula One Series B has higher revenue and earnings than Sphere Entertainment. Sphere Entertainment 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.
Summary
Liberty Media Corporation – Liberty Formula One Series B beats Sphere Entertainment on 8 of the 14 factors compared between the two stocks.
About Sphere Entertainment
Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates entertainment dining and nightlife venues markets under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.
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.
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