Dover Motorsports (DVD) versus Live Nation (LYV) Head to Head Analysis

Dover Motorsports (NYSE: DVD) and Live Nation (NYSE:LYV) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Volatility and Risk

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Dover Motorsports has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Live Nation has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

24.6% of Dover Motorsports shares are owned by institutional investors. Comparatively, 69.1% of Live Nation shares are owned by institutional investors. 50.3% of Dover Motorsports shares are owned by company insiders. Comparatively, 4.8% of Live Nation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Dover Motorsports and Live Nation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dover Motorsports 18.03% 7.31% 4.71%
Live Nation -0.24% -1.71% -0.32%

Dividends

Dover Motorsports pays an annual dividend of $0.08 per share and has a dividend yield of 3.9%. Live Nation does not pay a dividend. Dover Motorsports pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Dover Motorsports and Live Nation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dover Motorsports $46.74 million 1.61 $8.42 million $0.10 20.50
Live Nation $10.34 billion 0.78 -$97.64 million ($0.48) -81.19

Dover Motorsports has higher earnings, but lower revenue than Live Nation. Live Nation is trading at a lower price-to-earnings ratio than Dover Motorsports, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Dover Motorsports and Live Nation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Motorsports 0 0 1 0 3.00
Live Nation 0 1 7 0 2.88

Live Nation has a consensus target price of $49.33, suggesting a potential upside of 26.59%. Given Live Nation’s higher probable upside, analysts plainly believe Live Nation is more favorable than Dover Motorsports.

Summary

Dover Motorsports beats Live Nation on 10 of the 16 factors compared between the two stocks.

About Dover Motorsports

Dover Motorsports, Inc. markets and promotes motorsports entertainment in the United States. It owns and operates Dover International Speedway in Dover, Delaware; and Nashville Superspeedway near Nashville, Tennessee. The company was formerly known as Dover Downs Entertainment, Inc. Dover Motorsports, Inc. was founded in 1969 and is based in Dover, Delaware.

About Live Nation

Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Sponsorship & Advertising, and Ticketing segments. The Concerts segment promotes live music events in its owned and/or operated venues, and in rented third-party venues; operates and manages music venues; and produces music festivals and creates associated content. This segment also provides management and other services to artists. The Sponsorship & Advertising segment sells sponsorships and placement of advertising, including signage, online advertising, and promotional programs, as well as live streaming and music-related content; and ads across its distribution network of venues, events, and Websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events for specific brands. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients, as well as ticket resale services; and offers online access for customers relating to ticket and event information through its primary Websites, livenation.com and ticketmaster.com. It sells tickets through Websites, mobile apps, ticket outlets, and telephone call centers. This segment sells tickets for its events, as well as for third-party clients in various live event categories, such as arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. As of December 31, 2017, it owned, operated, or leased 115 entertainment venues and 140 other facilities in North America; and 35 entertainment venues and 118 other facilities internationally. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California.

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