Critical Comparison: Gaia (NASDAQ:GAIA) versus ITV (OTCMKTS:ITVPY)

Gaia (NASDAQ:GAIA) and ITV (OTCMKTS:ITVPY) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings for Gaia and ITV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaia	1	0	1	1	2.67
ITV	1	3	0	0	1.75

Gaia presently has a consensus target price of $9.00, indicating a potential upside of 122.77%. Given Gaia’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Gaia is more favorable than ITV.

Earnings and Valuation

This table compares Gaia and ITV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaia	$98.62 million	1.03	-$5.23 million	($0.19)	-21.26
ITV	$4.46 billion	0.87	$521.38 million	N/A	N/A

ITV has higher revenue and earnings than Gaia.

Volatility & Risk

Gaia has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, ITV has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Gaia and ITV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gaia	-5.06%	-5.00%	-3.36%
ITV	N/A	N/A	N/A

Institutional and Insider Ownership

40.5% of Gaia shares are owned by institutional investors. Comparatively, 51.4% of ITV shares are owned by institutional investors. 28.6% of Gaia shares are owned by company insiders. Comparatively, 0.0% of ITV shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

ITV beats Gaia on 7 of the 13 factors compared between the two stocks.

About Gaia

Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.

About ITV

ITV plc, an integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide. It operates through ITV Studios and Media & Entertainment segments. The ITV Studios segment creates and produces programs and formats that include sports, drama, entertainment, factual, and news for its own channels and other broadcasters. The segment also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Canada, Australia, Germany, France, Italy, Spain, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in licensing its finished programmes, formats, and third-party content internationally, as well as finances productions. The Media & Entertainment segment broadcasts and streams various contents on its family of free-to-air TV channels; and offers television advertising services. The company also delivers content through linear television broadcasting, as well as on the ITV Hub, BritBox UK, ITVX, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Premium subscription services. The company was founded in 1955 is based in London, the United Kingdom.