Capcom (OTCMKTS:CCOEY – Get Free Report) and Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA – Get Free Report) are both large-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Profitability
This table compares Capcom and Liberty Media Corporation – Liberty Formula One Series A’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capcom | 30.13% | 24.90% | 20.58% |
| Liberty Media Corporation – Liberty Formula One Series A | N/A | N/A | N/A |
Earnings & Valuation
This table compares Capcom and Liberty Media Corporation – Liberty Formula One Series A”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capcom | $1.30 billion | 11.37 | $360.28 million | $0.51 | 27.14 |
| Liberty Media Corporation – Liberty Formula One Series A | $4.48 billion | 4.87 | $170.33 million | $0.68 | 128.21 |
Capcom has higher earnings, but lower revenue than Liberty Media Corporation – Liberty Formula One Series A. Capcom is trading at a lower price-to-earnings ratio than Liberty Media Corporation – Liberty Formula One Series A, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
8.4% of Liberty Media Corporation – Liberty Formula One Series A shares are held by institutional investors. 0.6% of Liberty Media Corporation – Liberty Formula One Series A shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Capcom has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Liberty Media Corporation – Liberty Formula One Series A has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Capcom and Liberty Media Corporation – Liberty Formula One Series A, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capcom | 0 | 1 | 1 | 0 | 2.50 |
| Liberty Media Corporation – Liberty Formula One Series A | 0 | 1 | 4 | 2 | 3.14 |
Liberty Media Corporation – Liberty Formula One Series A has a consensus target price of $114.67, indicating a potential upside of 31.53%. Given Liberty Media Corporation – Liberty Formula One Series A’s stronger consensus rating and higher possible upside, analysts plainly believe Liberty Media Corporation – Liberty Formula One Series A is more favorable than Capcom.
Summary
Liberty Media Corporation – Liberty Formula One Series A beats Capcom on 9 of the 15 factors compared between the two stocks.
About Capcom
Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.
About Liberty Media Corporation – Liberty Formula One Series A
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.
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