Critical Comparison: Liberty Media Corporation – Liberty Formula One Series C (NASDAQ:FWONK) and Nexxen International (NASDAQ:NEXN)

Liberty Media Corporation – Liberty Formula One Series C (NASDAQ:FWONK) and Nexxen International (NASDAQ:NEXN) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Liberty Media Corporation – Liberty Formula One Series C and Nexxen International”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 C	$4.48 billion	4.70	$152.55 million	$0.68	138.12
Nexxen International	$364.78 million	1.42	$25.04 million	$0.22	41.34

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

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series C and Nexxen International’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 C	N/A	N/A	N/A
Nexxen International	3.41%	7.03%	4.38%

Insider and Institutional Ownership

92.3% of Liberty Media Corporation – Liberty Formula One Series C shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Liberty Media Corporation – Liberty Formula One Series C has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Liberty Media Corporation – Liberty Formula One Series C and Nexxen International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series C	0	3	5	0	2.62
Nexxen International	0	2	9	0	2.82

Liberty Media Corporation – Liberty Formula One Series C currently has a consensus price target of $116.29, indicating a potential upside of 23.81%. Nexxen International has a consensus price target of $12.89, indicating a potential upside of 41.71%. Given Nexxen International’s stronger consensus rating and higher probable upside, analysts plainly believe Nexxen International is more favorable than Liberty Media Corporation – Liberty Formula One Series C.

Summary

Nexxen International beats Liberty Media Corporation – Liberty Formula One Series C on 7 of the 13 factors compared between the two stocks.

About Liberty Media Corporation – Liberty Formula One Series C

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 Nexxen International

Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.