Lionsgate Studios (NYSE:LION) versus Liberty Media Corporation – Liberty Formula One Series C (NASDAQ:FWONK) Critical Analysis

Liberty Media Corporation – Liberty Formula One Series C (NASDAQ:FWONK) and Lionsgate Studios (NYSE:LION) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Liberty Media Corporation – Liberty Formula One Series C and Lionsgate Studios, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series C	1	5	6	1	2.54
Lionsgate Studios	2	4	8	1	2.53

Liberty Media Corporation – Liberty Formula One Series C presently has a consensus target price of $112.33, suggesting a potential upside of 19.80%. Lionsgate Studios has a consensus target price of $8.95, suggesting a potential upside of 9.47%. Given Liberty Media Corporation – Liberty Formula One Series C’s stronger consensus rating and higher probable upside, research analysts clearly believe Liberty Media Corporation – Liberty Formula One Series C is more favorable than Lionsgate Studios.

Volatility & Risk

Liberty Media Corporation – Liberty Formula One Series C has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Lionsgate Studios has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500.

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series C and Lionsgate Studios’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Media Corporation – Liberty Formula One Series C	N/A	N/A	N/A
Lionsgate Studios	-6.97%	N/A	-1.33%

Earnings and Valuation

This table compares Liberty Media Corporation – Liberty Formula One Series C and Lionsgate Studios”s 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 C	$3.32 billion	7.07	$195.04 million	$0.78	120.22
Lionsgate Studios	$3.20 billion	0.74	-$125.30 million	($0.67)	-12.21

Liberty Media Corporation – Liberty Formula One Series C has higher revenue and earnings than Lionsgate Studios. Lionsgate Studios is trading at a lower price-to-earnings ratio than Liberty Media Corporation – Liberty Formula One Series C, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.3% of Liberty Media Corporation – Liberty Formula One Series C shares are owned by institutional investors. 4.3% of Liberty Media Corporation – Liberty Formula One Series C shares are owned by company insiders. Comparatively, 9.4% of Lionsgate Studios shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Liberty Media Corporation – Liberty Formula One Series C beats Lionsgate Studios on 11 of the 13 factors compared between the two stocks.

About Liberty Media Corporation – Liberty Formula One Series C

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 Lionsgate Studios

Lionsgate Studios Corp. engages in the provision of motion picture and studio operations that bring a varied portfolio of entertainment to consumers. The company is headquartered in Santa Monica, CA.