Reservoir Media (NASDAQ:RSVR – 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 superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Institutional & Insider Ownership
44.4% of Reservoir Media shares are owned by institutional investors. Comparatively, 1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by institutional investors. 27.0% of Reservoir Media shares are owned by company insiders. Comparatively, 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are owned 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.
Earnings and Valuation
This table compares Reservoir Media and Liberty Media Corporation – Liberty Formula One Series B”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reservoir Media | $161.55 million | 2.98 | $7.75 million | $0.11 | 66.73 |
| Liberty Media Corporation – Liberty Formula One Series B | $3.32 billion | 6.77 | -$30.00 million | $1.02 | 88.24 |
Reservoir Media has higher earnings, but lower revenue than Liberty Media Corporation – Liberty Formula One Series B. Reservoir Media 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.
Analyst Ratings
This is a breakdown of current ratings and price targets for Reservoir Media and Liberty Media Corporation – Liberty Formula One Series B, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reservoir Media | 1 | 1 | 1 | 0 | 2.00 |
| Liberty Media Corporation – Liberty Formula One Series B | 0 | 0 | 0 | 0 | 0.00 |
Reservoir Media currently has a consensus target price of $11.50, indicating a potential upside of 56.68%. Given Reservoir Media’s stronger consensus rating and higher possible upside, research analysts clearly believe Reservoir Media is more favorable than Liberty Media Corporation – Liberty Formula One Series B.
Profitability
This table compares Reservoir Media 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 | |
| Reservoir Media | 4.67% | 2.07% | 0.90% |
| Liberty Media Corporation – Liberty Formula One Series B | 7.76% | N/A | N/A |
Volatility & Risk
Reservoir Media has a beta of 0.89, meaning that its stock price is 11% less 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.
Summary
Reservoir Media beats Liberty Media Corporation – Liberty Formula One Series B on 9 of the 14 factors compared between the two stocks.
About Reservoir Media
Reservoir Media, Inc. operates as a music publishing company. It operates through two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered 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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