Head to Head Analysis: Pearson (NYSE:PSO) vs. Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB)

Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB) and Pearson (NYSE:PSO) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series B and Pearson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Media Corporation – Liberty Formula One Series B	5.91%	N/A	N/A
Pearson	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Liberty Media Corporation – Liberty Formula One Series B and Pearson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series B	0	0	0	0	0.00
Pearson	0	4	2	1	2.57

Pearson has a consensus price target of $18.00, suggesting a potential upside of 36.83%. Given Pearson’s stronger consensus rating and higher possible upside, analysts plainly believe Pearson is more favorable than Liberty Media Corporation – Liberty Formula One Series B.

Valuation & Earnings

This table compares Liberty Media Corporation – Liberty Formula One Series B and Pearson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Media Corporation – Liberty Formula One Series B	$3.32 billion	6.13	-$30.00 million	$0.78	104.26
Pearson	$4.54 billion	1.84	$554.61 million	N/A	N/A

Pearson has higher revenue and earnings than Liberty Media Corporation – Liberty Formula One Series B.

Insider and Institutional Ownership

1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by institutional investors. Comparatively, 2.1% of Pearson shares are owned by institutional investors. 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by company insiders. Comparatively, 0.1% of Pearson shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Liberty Media Corporation – Liberty Formula One Series B has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Pearson has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Summary

Pearson beats Liberty Media Corporation – Liberty Formula One Series B on 8 of the 11 factors compared between the two stocks.

About Liberty Media Corporation – Liberty Formula One Series B

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 Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware. The Virtual Learning segment provides virtual schools and online program management services. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Credly, Pearson college, and apprenticeships. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. The company was founded in 1844 and is headquartered in London, the United Kingdom.