GigaMedia (NASDAQ:GIGM – Get Free Report) and LiveOne (NASDAQ:LVO – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Risk & Volatility
GigaMedia has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, LiveOne has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for GigaMedia and LiveOne, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GigaMedia | 1 | 0 | 0 | 0 | 1.00 |
| LiveOne | 1 | 0 | 1 | 0 | 2.00 |
LiveOne has a consensus price target of $10.00, suggesting a potential upside of 308.16%. Given LiveOne’s stronger consensus rating and higher possible upside, analysts plainly believe LiveOne is more favorable than GigaMedia.
Profitability
This table compares GigaMedia and LiveOne’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GigaMedia | 12.95% | -0.25% | -0.23% |
| LiveOne | -25.87% | N/A | -39.66% |
Earnings & Valuation
This table compares GigaMedia and LiveOne”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GigaMedia | $4.63 million | 3.27 | -$1.55 million | $0.08 | 17.12 |
| LiveOne | $77.14 million | 0.44 | -$20.97 million | ($1.75) | -1.40 |
GigaMedia has higher earnings, but lower revenue than LiveOne. LiveOne is trading at a lower price-to-earnings ratio than GigaMedia, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
13.5% of GigaMedia shares are held by institutional investors. Comparatively, 21.2% of LiveOne shares are held by institutional investors. 1.0% of GigaMedia shares are held by insiders. Comparatively, 19.8% of LiveOne shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
LiveOne beats GigaMedia on 8 of the 14 factors compared between the two stocks.
About GigaMedia
GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.
About LiveOne
LiveOne, Inc., a digital media company, engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content. It operates LiveXLive, a live music streaming platform; PodcastOne, a podcasting platform; and Slacker, an integrated membership and advertising streaming music service, as well as produces original music-related content. The company also produces, edits, curates, and streams live music events through broadband transmission over the Internet and satellite networks to its users; provides digital Internet radio and music services to users online and through automotive and mobile original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services. In addition, it develops, manufactures, and distributes personalized merchandise and gifts through wholesale and direct-to-consumer distribution channels. Further, the company offers LiveOne App, an application that provides access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing of content. The company was formerly known as LiveXLive Media, Inc. and changed its name to LiveOne, Inc. in October 2021. LiveOne, Inc. was incorporated in 2009 and is headquartered in Beverly Hills, California.
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