LiveOne (NASDAQ:LVO – Get Free Report) and GigaMedia (NASDAQ:GIGM – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Analyst Ratings
This is a breakdown of recent ratings for LiveOne and GigaMedia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LiveOne | 1 | 0 | 1 | 0 | 2.00 |
| GigaMedia | 1 | 0 | 0 | 0 | 1.00 |
LiveOne presently has a consensus price target of $10.00, suggesting a potential upside of 234.56%. Given LiveOne’s stronger consensus rating and higher probable upside, equities analysts clearly believe LiveOne is more favorable than GigaMedia.
Risk and Volatility
LiveOne has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
Profitability
This table compares LiveOne and GigaMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LiveOne | -25.87% | N/A | -39.66% |
| GigaMedia | 12.95% | -0.25% | -0.23% |
Institutional & Insider Ownership
21.2% of LiveOne shares are owned by institutional investors. Comparatively, 13.5% of GigaMedia shares are owned by institutional investors. 19.8% of LiveOne shares are owned by company insiders. Comparatively, 1.0% of GigaMedia shares are owned by company insiders. 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.
Valuation & Earnings
This table compares LiveOne and GigaMedia”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LiveOne | $77.29 million | 0.53 | -$20.97 million | ($1.75) | -1.71 |
| GigaMedia | $3.47 million | 4.38 | -$1.55 million | $0.08 | 17.19 |
GigaMedia has lower revenue, but higher earnings than LiveOne. LiveOne is trading at a lower price-to-earnings ratio than GigaMedia, indicating that it is currently the more affordable of the two stocks.
Summary
LiveOne beats GigaMedia on 8 of the 14 factors compared between the two stocks.
About LiveOne
LiveOne, Inc. (NASDAQ: LVO) is a digital media and entertainment company that develops and distributes music, podcasting, and live-event content. Its offerings are designed to provide consumers with access to streaming audio, original programming, digital radio, and interactive entertainment experiences across connected devices. The company operates the LiveOne platform, which features music and live entertainment programming, including livestreamed concerts, festivals, and other artist-focused events.
About GigaMedia
GigaMedia Limited (NASDAQ: GIGM) is an online games and entertainment company focused primarily on markets in Greater China and Southeast Asia. Through its online entertainment platforms, the company provides casual and social games, including mahjong, poker, card and other multiplayer titles designed for play on computers and mobile devices. The company operates the FunTown brand, which has historically served users in Taiwan and other Asian markets. Its services are generally supported by digital distribution and online platform features, including account management, virtual goods and other forms of in-game entertainment.
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