Financial Analysis: Paramount Skydance (NASDAQ:PSKY) & Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA)

Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA) and Paramount Skydance (NASDAQ:PSKY) are both large-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series A and Paramount Skydance’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 A	N/A	N/A	N/A
Paramount Skydance	-2.13%	4.11%	1.21%

Analyst Ratings

This is a summary of recent recommendations and price targets for Liberty Media Corporation – Liberty Formula One Series A and Paramount Skydance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series A	0	1	4	2	3.14
Paramount Skydance	8	5	2	0	1.60

Liberty Media Corporation – Liberty Formula One Series A presently has a consensus price target of $114.67, suggesting a potential upside of 31.76%. Paramount Skydance has a consensus price target of $11.38, suggesting a potential upside of 7.40%. Given Liberty Media Corporation – Liberty Formula One Series A’s stronger consensus rating and higher possible upside, research analysts plainly believe Liberty Media Corporation – Liberty Formula One Series A is more favorable than Paramount Skydance.

Volatility & Risk

Liberty Media Corporation – Liberty Formula One Series A has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Paramount Skydance has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Earnings and Valuation

This table compares Liberty Media Corporation – Liberty Formula One Series A and Paramount Skydance”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 A	$4.48 billion	4.86	$170.33 million	$0.68	127.99
Paramount Skydance	$28.89 billion	0.41	-$621.00 million	$0.29	36.55

Liberty Media Corporation – Liberty Formula One Series A has higher earnings, but lower revenue than Paramount Skydance. Paramount Skydance 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 & Institutional Ownership

8.4% of Liberty Media Corporation – Liberty Formula One Series A shares are held by institutional investors. Comparatively, 73.0% of Paramount Skydance shares are held by institutional investors. 0.6% of Liberty Media Corporation – Liberty Formula One Series A shares are held by insiders. Comparatively, 0.4% of Paramount Skydance shares are held by 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.

Summary

Liberty Media Corporation – Liberty Formula One Series A beats Paramount Skydance on 10 of the 15 factors compared between the two stocks.

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.

About Paramount Skydance

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.