Financial Contrast: Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA) versus NEXON (OTCMKTS:NEXOY)

NEXON (OTCMKTS:NEXOY) and Liberty Media Corporation – Liberty Formula One Series A (NASDAQ:FWONA) are both large-cap communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares NEXON 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
NEXON	26.37%	12.56%	9.86%
Liberty Media Corporation – Liberty Formula One Series A	N/A	N/A	N/A

Insider and Institutional Ownership

8.4% of Liberty Media Corporation – Liberty Formula One Series A shares are owned by institutional investors. 0.6% of Liberty Media Corporation – Liberty Formula One Series A shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares NEXON and Liberty Media Corporation – Liberty Formula One Series A”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NEXON	$3.18 billion	4.19	$616.75 million	C$1.11	15.37
Liberty Media Corporation – Liberty Formula One Series A	$4.34 billion	4.94	$170.32 million	$0.68	125.91

NEXON has higher earnings, but lower revenue than Liberty Media Corporation – Liberty Formula One Series A. NEXON 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NEXON 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
NEXON	0	2	2	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 price target of $114.67, suggesting a potential upside of 33.93%. 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 NEXON.

Summary

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

About NEXON

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, 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.