Live Nation (NYSE: LYV) and Manchester United F.C. (NYSE:MANU) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Volatility and Risk
Live Nation has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Manchester United F.C. has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
69.1% of Live Nation shares are owned by institutional investors. Comparatively, 87.1% of Manchester United F.C. shares are owned by institutional investors. 4.8% of Live Nation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Live Nation and Manchester United F.C.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Live Nation||$10.34 billion||0.79||-$97.64 million||($0.48)||-81.77|
|Manchester United F.C.||$737.29 million||1.01||$49.68 million||$0.27||68.52|
Manchester United F.C. has lower revenue, but higher earnings than Live Nation. Live Nation is trading at a lower price-to-earnings ratio than Manchester United F.C., indicating that it is currently the more affordable of the two stocks.
Manchester United F.C. pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Live Nation does not pay a dividend. Manchester United F.C. pays out 66.7% of its earnings in the form of a dividend. Manchester United F.C. has increased its dividend for 2 consecutive years.
This table compares Live Nation and Manchester United F.C.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manchester United F.C.||-0.23%||8.17%||2.66%|
This is a summary of recent ratings and recommmendations for Live Nation and Manchester United F.C., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manchester United F.C.||0||0||2||0||3.00|
Live Nation presently has a consensus target price of $49.33, suggesting a potential upside of 25.69%. Manchester United F.C. has a consensus target price of $20.50, suggesting a potential upside of 10.81%. Given Live Nation’s higher probable upside, equities analysts clearly believe Live Nation is more favorable than Manchester United F.C..
Manchester United F.C. beats Live Nation on 11 of the 17 factors compared between the two stocks.
About Live Nation
Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Sponsorship & Advertising, and Ticketing segments. The Concerts segment promotes live music events in its owned and/or operated venues, and in rented third-party venues; operates and manages music venues; and produces music festivals and creates associated content. This segment also provides management and other services to artists. The Sponsorship & Advertising segment sells sponsorships and placement of advertising, including signage, online advertising, and promotional programs, as well as live streaming and music-related content; and ads across its distribution network of venues, events, and Websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events for specific brands. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients, as well as ticket resale services; and offers online access for customers relating to ticket and event information through its primary Websites, livenation.com and ticketmaster.com. It sells tickets through Websites, mobile apps, ticket outlets, and telephone call centers. This segment sells tickets for its events, as well as for third-party clients in various live event categories, such as arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. As of December 31, 2017, it owned, operated, or leased 115 entertainment venues and 140 other facilities in North America; and 35 entertainment venues and 118 other facilities internationally. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California.
About Manchester United F.C.
Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. The company operates Manchester United Football Club, a professional football club. It develops marketing and sponsorship relationships with regional and international companies to leverage its brand. The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products ranging from coffee mugs to bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company's partners' wholesale distribution channels. In addition, it markets mobile and content to its followers through its Website, www.manutd.com, and associated mobile properties. Further, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, European competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Additionally, it offers a direct to consumer mobile application in approximately 168 territories; and operates Old Trafford, a sports venue with 75,457 seats. The company was founded in 1878 and is based in Manchester, the United Kingdom. Manchester United plc is a subsidiary of Red Football LLC.
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