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 investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Insider & Institutional Ownership
44.4% of Reservoir Media shares are held by institutional investors. Comparatively, 1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are held by institutional investors. 27.0% of Reservoir Media shares are held by insiders. Comparatively, 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Reservoir Media has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Liberty Media Corporation – Liberty Formula One Series B has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reservoir Media | $158.71 million | 3.05 | $7.75 million | $0.11 | 67.09 |
| 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.
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 |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Reservoir Media and Liberty Media Corporation – Liberty Formula One Series B, as reported by MarketBeat.
| 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 presently has a consensus price target of $11.50, indicating a potential upside of 55.83%. Given Reservoir Media’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Reservoir Media is more favorable than Liberty Media Corporation – Liberty Formula One Series B.
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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