Critical Analysis: CBS (CBS.A) vs. Liberty Media Formula One Series A (FWONA)

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CBS (NYSE:CBS.A) and Liberty Media Formula One Series A (NASDAQ:FWONA) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation & Earnings

This table compares CBS and Liberty Media Formula One Series A’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBS $13.69 billion 1.58 $357.00 million N/A N/A
Liberty Media Formula One Series A $1.78 billion 4.17 $1.35 billion $1.21 26.62

Liberty Media Formula One Series A has lower revenue, but higher earnings than CBS.

Risk and Volatility

CBS has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Liberty Media Formula One Series A has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

1.7% of CBS shares are held by institutional investors. Comparatively, 10.2% of Liberty Media Formula One Series A shares are held by institutional investors. 1.7% of CBS shares are held by insiders. Comparatively, 4.7% of Liberty Media Formula One Series A shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares CBS and Liberty Media Formula One Series A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBS 9.42% 86.51% 9.02%
Liberty Media Formula One Series A 20.90% 1.66% 0.88%

Analyst Ratings

This is a summary of current recommendations and price targets for CBS and Liberty Media Formula One Series A, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBS 0 0 0 0 N/A
Liberty Media Formula One Series A 0 2 4 0 2.67

Liberty Media Formula One Series A has a consensus price target of $38.75, indicating a potential upside of 20.30%. Given Liberty Media Formula One Series A’s higher possible upside, analysts plainly believe Liberty Media Formula One Series A is more favorable than CBS.

Dividends

CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Liberty Media Formula One Series A does not pay a dividend.

Summary

Liberty Media Formula One Series A beats CBS on 9 of the 13 factors compared between the two stocks.

CBS Company Profile

CBS Corporation is a mass media company. The Company operates through four segment: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company’s digital streaming services, CBS All Access and CBSN. The Cable Networks segment comprises Showtime Networks, which operates its subscription program services, Showtime, The Movie Channel, and Flix. The Publishing segment comprises Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Gallery Books. The Local Media segment comprises CBS TV Stations, it owns 30 broadcast TV stations; and CBS Local Digital Media. Its businesses span the media and entertainment industries, including the CBS TV Network, cable networks and content production and distribution.

Liberty Media Formula One Series A Company Profile

Formula One Group, through its subsidiaries, engages in the media and entertainment businesses in North America. Formula One Group was formerly known as The Liberty Media Group. The company is based in Englewood, Colorado. Formula One Group is a former subsidiary of Liberty Media Corporation.

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