Formula One Group (NASDAQ:FWONK) and ViacomCBS (NASDAQ:VIAC) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Risk & Volatility
Formula One Group has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, ViacomCBS has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.
Insider & Institutional Ownership
81.6% of Formula One Group shares are held by institutional investors. Comparatively, 80.5% of ViacomCBS shares are held by institutional investors. 0.3% of ViacomCBS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Formula One Group and ViacomCBS's 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 | 5.21 | $106 million | ($1.35) | -33.69 |
| ViacomCBS | $27.81 billion | 0.93 | $3.31 billion | $5.01 | 8.36 |
ViacomCBS has higher revenue and earnings than Formula One Group. Formula One Group is trading at a lower price-to-earnings ratio than ViacomCBS, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Formula One Group and ViacomCBS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Formula One Group | 1 | 1 | 3 | 0 | 2.40 |
| ViacomCBS | 8 | 9 | 6 | 0 | 1.91 |
Formula One Group currently has a consensus target price of $47.6667, suggesting a potential upside of 4.81%. ViacomCBS has a consensus target price of $46.5652, suggesting a potential upside of 11.19%. Given ViacomCBS's higher probable upside, analysts clearly believe ViacomCBS is more favorable than Formula One Group.
Profitability
This table compares Formula One Group and ViacomCBS's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Formula One Group | -64.67% | -3.51% | -1.72% |
| ViacomCBS | 5.22% | 18.58% | 5.23% |
Summary
ViacomCBS beats Formula One Group on 11 of the 14 factors compared between the two stocks.
