Liberty Media Formula One Series A (NASDAQ:FWONA) versus Gray Television, Inc. Class A (GTN.A) Critical Review

Gray Television, Inc. Class A (NASDAQ: FWONA) and Liberty Media Formula One Series A (NASDAQ:FWONA) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Risk & Volatility

Gray Television, Inc. Class A has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500. Comparatively, Liberty Media Formula One Series A has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

0.4% of Gray Television, Inc. Class A shares are held by institutional investors. Comparatively, 10.2% of Liberty Media Formula One Series A shares are held by institutional investors. 13.3% of Gray Television, Inc. Class A shares are held by insiders. Comparatively, 5.3% of Liberty Media Formula One Series A shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Gray Television, Inc. Class A and Liberty Media Formula One Series A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gray Television, Inc. Class A 25.99% 11.89% 3.35%
Liberty Media Formula One Series A 20.90% 1.66% 0.88%

Earnings & Valuation

This table compares Gray Television, Inc. Class A and Liberty Media Formula One Series A’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gray Television, Inc. Class A $882.73 million 1.61 $261.95 million N/A N/A
Liberty Media Formula One Series A $1.78 billion 4.53 $1.35 billion $1.21 28.91

Liberty Media Formula One Series A has higher revenue and earnings than Gray Television, Inc. Class A.

Analyst Recommendations

This is a summary of current recommendations for Gray Television, Inc. Class A and Liberty Media Formula One Series A, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gray Television, Inc. Class A 0 0 0 0 N/A
Liberty Media Formula One Series A 0 3 5 0 2.63

Liberty Media Formula One Series A has a consensus price target of $39.80, indicating a potential upside of 13.78%. Given Liberty Media Formula One Series A’s higher possible upside, analysts clearly believe Liberty Media Formula One Series A is more favorable than Gray Television, Inc. Class A.

Summary

Liberty Media Formula One Series A beats Gray Television, Inc. Class A on 7 of the 12 factors compared between the two stocks.

About Gray Television, Inc. Class A

Gray Television, Inc. is a television broadcast company. The Company owns and operates television stations and digital assets in various markets across the United States. As of February 21, 2017, the Company owned and/or operated television stations in 54 television markets broadcasting over 200 separate programming streams, including 37 affiliates of the CBS Network (CBS), 29 affiliates of the NBC Network (NBC), 20 affiliates of the ABC Network (ABC) and 15 affiliates of the FOX Network (FOX). In addition to a primary broadcast channel, each of its stations can also broadcast additional secondary digital channels within a market by utilizing the same bandwidth, but with different programming from the primary channel. The Company also broadcasts local news/weather channels in certain of its existing markets. Along with affiliations with ABC, CBS and FOX, the Company’s secondary channels are affiliated with various smaller networks and program services.

About Liberty Media Formula One Series A

Formula One Group, through its subsidiaries, engages in the media and entertainment businesses in North America. Formula One Group was formerly known as The Liberty Media Group. The company is based in Englewood, Colorado. Formula One Group is a former subsidiary of Liberty Media Corporation.

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