LiveOne (NASDAQ:LVO) and GigaMedia (NASDAQ:GIGM) Head-To-Head Survey

GigaMedia (NASDAQ:GIGM) and LiveOne (NASDAQ:LVO) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Volatility and Risk

GigaMedia has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, LiveOne has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for GigaMedia and LiveOne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	1	0	0	0	1.00
LiveOne	1	0	1	0	2.00

LiveOne has a consensus target price of $10.00, indicating a potential upside of 280.23%. Given LiveOne’s stronger consensus rating and higher probable upside, analysts plainly believe LiveOne is more favorable than GigaMedia.

Valuation and Earnings

This table compares GigaMedia and LiveOne”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaMedia	$3.47 million	4.35	-$1.55 million	$0.08	17.07
LiveOne	$77.14 million	0.47	-$20.97 million	($1.75)	-1.50

GigaMedia has higher earnings, but lower revenue 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.

Profitability

This table compares GigaMedia and LiveOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GigaMedia	12.95%	-0.25%	-0.23%
LiveOne	-25.87%	N/A	-39.66%

Institutional & Insider Ownership

13.5% of GigaMedia shares are owned by institutional investors. Comparatively, 21.2% of LiveOne shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by insiders. Comparatively, 19.8% of LiveOne shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

LiveOne beats GigaMedia on 8 of the 13 factors compared between the two stocks.

About GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.

About LiveOne

LiveOne, Inc., a digital media company, engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content. It operates LiveXLive, a live music streaming platform; PodcastOne, a podcasting platform; and Slacker, an integrated membership and advertising streaming music service, as well as produces original music-related content. The company also produces, edits, curates, and streams live music events through broadband transmission over the Internet and satellite networks to its users; provides digital Internet radio and music services to users online and through automotive and mobile original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services. In addition, it develops, manufactures, and distributes personalized merchandise and gifts through wholesale and direct-to-consumer distribution channels. Further, the company offers LiveOne App, an application that provides access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing of content. The company was formerly known as LiveXLive Media, Inc. and changed its name to LiveOne, Inc. in October 2021. LiveOne, Inc. was incorporated in 2009 and is headquartered in Beverly Hills, California.