Financial Survey: Pearson (NYSE:PSO) and Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB)

Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB) and Pearson (NYSE:PSO) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Liberty Media Corporation – Liberty Formula One Series B and Pearson”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Media Corporation – Liberty Formula One Series B	$3.32 billion	5.95	-$30.00 million	$0.78	101.28
Pearson	$3.52 billion	2.22	$554.61 million	N/A	N/A

Pearson has higher revenue and earnings than Liberty Media Corporation – Liberty Formula One Series B.

Volatility & Risk

Liberty Media Corporation – Liberty Formula One Series B has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Pearson has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Liberty Media Corporation – Liberty Formula One Series B and Pearson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series B	0	0	0	0	0.00
Pearson	0	4	2	1	2.57

Pearson has a consensus target price of $18.00, suggesting a potential upside of 46.70%. Given Pearson’s stronger consensus rating and higher possible upside, analysts clearly believe Pearson is more favorable than Liberty Media Corporation – Liberty Formula One Series B.

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series B and Pearson’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 B	5.91%	N/A	N/A
Pearson	N/A	N/A	N/A

Institutional & Insider Ownership

1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are held by institutional investors. Comparatively, 2.1% of Pearson shares are held by institutional investors. 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are held by company insiders. Comparatively, 0.1% of Pearson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Pearson beats Liberty Media Corporation – Liberty Formula One Series B on 8 of the 11 factors compared between the two stocks.

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.

About Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.