Tencent Music Entertainment Group (NYSE:TME) and Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA) Critical Survey

Tencent Music Entertainment Group (NYSE:TME) and Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Risk & Volatility

Tencent Music Entertainment Group has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Liberty Media Corporation – Liberty Formula One Series A has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tencent Music Entertainment Group and Liberty Media Corporation – Liberty Formula One Series A”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tencent Music Entertainment Group	$3.89 billion	N/A	$924.18 million	$0.96	17.51
Liberty Media Corporation – Liberty Formula One Series A	$3.32 billion	6.12	$195.04 million	$0.78	104.08

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

Analyst Recommendations

This is a summary of current ratings and price targets for Tencent Music Entertainment Group and Liberty Media Corporation – Liberty Formula One Series A, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent Music Entertainment Group	0	3	9	1	2.85
Liberty Media Corporation – Liberty Formula One Series A	1	2	3	1	2.57

Tencent Music Entertainment Group currently has a consensus price target of $25.79, indicating a potential upside of 53.45%. Liberty Media Corporation – Liberty Formula One Series A has a consensus price target of $103.00, indicating a potential upside of 26.88%. Given Tencent Music Entertainment Group’s stronger consensus rating and higher possible upside, analysts clearly believe Tencent Music Entertainment Group is more favorable than Liberty Media Corporation – Liberty Formula One Series A.

Profitability

This table compares Tencent Music Entertainment Group and Liberty Media Corporation – Liberty Formula One Series A’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tencent Music Entertainment Group	34.00%	11.13%	8.79%
Liberty Media Corporation – Liberty Formula One Series A	N/A	N/A	N/A

Insider and Institutional Ownership

24.3% of Tencent Music Entertainment Group shares are owned by institutional investors. Comparatively, 8.4% of Liberty Media Corporation – Liberty Formula One Series A shares are owned by institutional investors. 3.0% of Liberty Media Corporation – Liberty Formula One Series A shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Tencent Music Entertainment Group beats Liberty Media Corporation – Liberty Formula One Series A on 10 of the 13 factors compared between the two stocks.

About Tencent Music Entertainment Group

Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform. In addition, it sells music-related merchandise; and artist-related merchandise, such as branded apparel, posters and art prints, and accessories and integrated and technology-driven music solutions that help IoT device manufacturers build and operate their branded music services on their IoT devices, as well as offers advertising services across its online karaoke platform and online music apps. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.

About Liberty Media Corporation – Liberty Formula One Series A

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.