Head to Head Review: SKY (SKYAY) and Liberty Media Formula One Series A (FWONA)

SKY (OTCMKTS: SKYAY) 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 businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

This table compares SKY 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
SKY N/A N/A N/A
Liberty Media Formula One Series A 18.55% 1.53% 0.80%

Insider and Institutional Ownership

0.1% of SKY shares are owned by institutional investors. Comparatively, 9.9% of Liberty Media Formula One Series A shares are owned by institutional investors. 4.7% of Liberty Media Formula One Series A shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

SKY pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Liberty Media Formula One Series A does not pay a dividend. SKY pays out 41.6% of its earnings in the form of a dividend.

Risk & Volatility

SKY has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Liberty Media Formula One Series A has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SKY and Liberty Media Formula One Series A, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SKY 0 1 1 0 2.50
Liberty Media Formula One Series A 0 3 5 0 2.63

Liberty Media Formula One Series A has a consensus price target of $39.67, indicating a potential upside of 24.78%. Given Liberty Media Formula One Series A’s stronger consensus rating and higher probable upside, analysts clearly believe Liberty Media Formula One Series A is more favorable than SKY.

Valuation and Earnings

This table compares SKY 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
SKY $16.50 billion 1.84 $881.46 million $3.08 23.03
Liberty Media Formula One Series A $1.78 billion 4.12 $1.35 billion $1.21 26.27

Liberty Media Formula One Series A has lower revenue, but higher earnings than SKY. SKY is trading at a lower price-to-earnings ratio than Liberty Media Formula One Series A, indicating that it is currently the more affordable of the two stocks.

Summary

Liberty Media Formula One Series A beats SKY on 13 of the 16 factors compared between the two stocks.

SKY Company Profile

Sky plc, together with its subsidiaries, engages in entertainment and communications businesses. The company offers pay television broadcasting and home communications services, including broadband and telephone services; over-the-top subscriptions; and HD, UHD, multiscreen, line rental, second smartcard, premium HD, and mobile TV, as well as on demand services, such as Catch Up TV and box sets. Sky plc serves approximately 22.5 million residential and commercial customers in the United Kingdom, Ireland, Italy, Germany, and Austria. The company was formerly known as British Sky Broadcasting Group plc and changed its name to Sky plc in November 2014. Sky plc was incorporated in 1988 and is headquartered in Isleworth, the United Kingdom.

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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