Formula One Group (NASDAQ:FWONA) and Grupo Televisa, S.A.B. (NYSE:TV) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
9.7% of Formula One Group shares are held by institutional investors. Comparatively, 45.5% of Grupo Televisa, S.A.B. shares are held by institutional investors. 4.8% of Formula One Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Formula One Group and Grupo Televisa, S.A.B., as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Formula One Group | 0 | 2 | 4 | 0 | 2.67 |
| Grupo Televisa, S.A.B. | 1 | 1 | 2 | 0 | 2.25 |
Formula One Group presently has a consensus price target of $41.00, indicating a potential upside of 7.81%. Grupo Televisa, S.A.B. has a consensus price target of $5.50, indicating a potential downside of 33.25%. Given Formula One Group's stronger consensus rating and higher possible upside, research analysts plainly believe Formula One Group is more favorable than Grupo Televisa, S.A.B..
Volatility & Risk
Formula One Group has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Grupo Televisa, S.A.B. has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Valuation & Earnings
This table compares Formula One Group and Grupo Televisa, S.A.B.'s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Formula One Group | $2.02 billion | 4.36 | $106 million | ($1.35) | -28.17 |
| Grupo Televisa, S.A.B. | $5.27 billion | 0.90 | $240.56 million | $0.42 | 19.62 |
Grupo Televisa, S.A.B. has higher revenue and earnings than Formula One Group. Formula One Group is trading at a lower price-to-earnings ratio than Grupo Televisa, S.A.B., indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Formula One Group and Grupo Televisa, S.A.B.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Formula One Group | -51.60% | -2.86% | -1.41% |
| Grupo Televisa, S.A.B. | -4.94% | -5.26% | -1.62% |
Summary
Formula One Group beats Grupo Televisa, S.A.B. on 9 of the 14 factors compared between the two stocks.
