Head to Head Review: Cineverse (NASDAQ:CNVS) and Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB)

Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB) and Cineverse (NASDAQ:CNVS) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Liberty Media Corporation – Liberty Formula One Series B and Cineverse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series B	0	0	0	0	0.00
Cineverse	1	0	1	0	2.00

Cineverse has a consensus target price of $9.00, suggesting a potential upside of 248.70%. Given Cineverse’s stronger consensus rating and higher possible upside, analysts clearly believe Cineverse is more favorable than Liberty Media Corporation – Liberty Formula One Series B.

Earnings and Valuation

This table compares Liberty Media Corporation – Liberty Formula One Series B and Cineverse”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Media Corporation – Liberty Formula One Series B	$3.32 billion	6.77	-$30.00 million	$0.78	115.38
Cineverse	$80.17 million	0.62	$3.60 million	($0.14)	-18.44

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

Volatility and Risk

Liberty Media Corporation – Liberty Formula One Series B has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, Cineverse has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series B and Cineverse’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 B	5.91%	N/A	N/A
Cineverse	3.89%	9.98%	4.53%

Insider & Institutional Ownership

1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by institutional investors. Comparatively, 8.2% of Cineverse shares are owned by institutional investors. 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are owned by insiders. Comparatively, 13.3% of Cineverse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Cineverse beats Liberty Media Corporation – Liberty Formula One Series B on 9 of the 14 factors compared between the two stocks.

About Liberty Media Corporation – Liberty Formula One Series B

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 Cineverse

Cineverse Corp. operates as a streaming technology and entertainment company. The company operates in two segments, Cinema Equipment, and Content and Entertainment. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels; and offers monitoring, billing, collection, and verification services. It entertains consumers worldwide by providing premium feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.