Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA – Get Free Report) and Madison Square Garden Entertainment (NYSE:MSGE – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Liberty Media Corporation – Liberty Formula One Series A and Madison Square Garden Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Media Corporation – Liberty Formula One Series A | 1 | 2 | 3 | 1 | 2.57 |
| Madison Square Garden Entertainment | 0 | 4 | 3 | 1 | 2.63 |
Liberty Media Corporation – Liberty Formula One Series A currently has a consensus target price of $103.00, indicating a potential upside of 25.78%. Madison Square Garden Entertainment has a consensus target price of $54.00, indicating a potential downside of 9.53%. Given Liberty Media Corporation – Liberty Formula One Series A’s higher possible upside, equities analysts plainly believe Liberty Media Corporation – Liberty Formula One Series A is more favorable than Madison Square Garden Entertainment.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Media Corporation – Liberty Formula One Series A | $3.32 billion | 6.17 | $195.04 million | $0.78 | 104.99 |
| Madison Square Garden Entertainment | $942.73 million | 2.56 | $37.43 million | $0.70 | 85.26 |
Liberty Media Corporation – Liberty Formula One Series A has higher revenue and earnings than Madison Square Garden Entertainment. Madison Square Garden Entertainment is trading at a lower price-to-earnings ratio than Liberty Media Corporation – Liberty Formula One Series A, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
8.4% of Liberty Media Corporation – Liberty Formula One Series A shares are owned by institutional investors. Comparatively, 96.9% of Madison Square Garden Entertainment shares are owned by institutional investors. 3.0% of Liberty Media Corporation – Liberty Formula One Series A shares are owned by insiders. Comparatively, 16.4% of Madison Square Garden Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Liberty Media Corporation – Liberty Formula One Series A and Madison Square Garden Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Media Corporation – Liberty Formula One Series A | N/A | N/A | N/A |
| Madison Square Garden Entertainment | 3.65% | -310.15% | 2.75% |
Risk and Volatility
Liberty Media Corporation – Liberty Formula One Series A has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Madison Square Garden Entertainment has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Summary
Liberty Media Corporation – Liberty Formula One Series A beats Madison Square Garden Entertainment on 8 of the 13 factors compared between the two stocks.
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.
About Madison Square Garden Entertainment
Madison Square Garden Entertainment Corp. engages in the provision of entertainment services. Its portfolio of venues includes The Garden, Radio City Music Hall, the Beacon Theatre, The Theater at Madison Square, and The Chicago Theatre. The company was founded in 1879 and is headquartered in New York, NY.
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