Financial Review: Media General (MEG) and Liberty Media Co. – Series A Liberty Formula One (NASDAQ:FWONA)

Media General (NYSE: MEG) and Liberty Media Co. – Series A Liberty Formula One (NASDAQ:FWONA) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Insider and Institutional Ownership

90.8% of Media General shares are held by institutional investors. Comparatively, 9.8% of Liberty Media Co. – Series A Liberty Formula One shares are held by institutional investors. 16.5% of Media General shares are held by insiders. Comparatively, 5.3% of Liberty Media Co. – Series A Liberty Formula One shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Media General and Liberty Media Co. – Series A Liberty Formula One’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Media General -4.25% 6.92% 2.28%
Liberty Media Co. – Series A Liberty Formula One N/A -0.59% -0.31%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Media General and Liberty Media Co. – Series A Liberty Formula One, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Media General 0 0 1 0 3.00
Liberty Media Co. – Series A Liberty Formula One 0 3 5 0 2.63

Media General presently has a consensus target price of $8.00, suggesting a potential downside of 56.78%. Liberty Media Co. – Series A Liberty Formula One has a consensus target price of $40.00, suggesting a potential upside of 22.25%. Given Liberty Media Co. – Series A Liberty Formula One’s higher probable upside, analysts clearly believe Liberty Media Co. – Series A Liberty Formula One is more favorable than Media General.

Valuation and Earnings

This table compares Media General and Liberty Media Co. – Series A Liberty Formula One’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Media General N/A N/A N/A ($0.48) -38.56
Liberty Media Co. – Series A Liberty Formula One $5.28 billion 1.42 $680.00 million ($0.38) -86.10

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

Summary

Media General beats Liberty Media Co. – Series A Liberty Formula One on 6 of the 11 factors compared between the two stocks.

Media General Company Profile

Media General, Inc. is a television broadcasting and digital media company. The Company provides news, information and entertainment in markets across the United States. The Company operates or services 71 network-affiliated broadcast television stations in 48 markets along with the digital media business. The Company’s network affiliations include twelve CBS stations, nine NBC stations, seven ABC stations, one FOX station, one CW station and one MyNetworkTV station. The Company offers consumers and advertisers with entertainment and information, content and distribution on every screen. Its portfolio of broadcast, digital and mobile products informs and engages 23% of United States Television (TV) households and 43% of the United States Internet audience. The Company has the diverse digital media business with a portfolio that includes LIN Digital, LIN Mobile, HYFN, Dedicated Media, Federated Media and BiteSizeTV.

Liberty Media Co. – Series A Liberty Formula One Company Profile

Liberty Media Corporation (Liberty) owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. Through its subsidiaries and affiliates, the Company principally operates in North America. Its principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and the Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company operates through two segments: SIRIUS X, and corporate and other. SIRIUS XM transmits its music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through its approximately two satellite radio systems. SIRIUS XM has approximately 29.6 million subscribers. Its corporate and other segment includes its consolidated subsidiary, Braves Holdings.

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