Analyzing Liberty Media Corporation – Liberty Live Series C (NASDAQ:LLYVK) & Alliance Entertainment (NASDAQ:AENT)

Liberty Media Corporation – Liberty Live Series C (NASDAQ:LLYVK) and Alliance Entertainment (NASDAQ:AENT) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Liberty Media Corporation – Liberty Live Series C and Alliance Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Live Series C	1	1	0	0	1.50
Alliance Entertainment	0	2	2	0	2.50

Alliance Entertainment has a consensus target price of $10.67, indicating a potential upside of 45.12%. Given Alliance Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Alliance Entertainment is more favorable than Liberty Media Corporation – Liberty Live Series C.

Valuation and Earnings

This table compares Liberty Media Corporation – Liberty Live Series C and Alliance Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Media Corporation – Liberty Live Series C	N/A	N/A	N/A	($3.86)	-21.96
Alliance Entertainment	$1.06 billion	0.35	$15.08 million	$0.39	18.85

Alliance Entertainment has higher revenue and earnings than Liberty Media Corporation – Liberty Live Series C. Liberty Media Corporation – Liberty Live Series C is trading at a lower price-to-earnings ratio than Alliance Entertainment, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

60.4% of Liberty Media Corporation – Liberty Live Series C shares are owned by institutional investors. Comparatively, 0.3% of Alliance Entertainment shares are owned by institutional investors. 77.6% of Alliance Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Liberty Media Corporation – Liberty Live Series C has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Alliance Entertainment has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Liberty Media Corporation – Liberty Live Series C and Alliance Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Media Corporation – Liberty Live Series C	N/A	N/A	N/A
Alliance Entertainment	1.80%	21.87%	5.91%

Summary

Alliance Entertainment beats Liberty Media Corporation – Liberty Live Series C on 10 of the 12 factors compared between the two stocks.

About Liberty Media Corporation – Liberty Live Series C

Liberty Live Group operates in the media, communications, and entertainment industries primarily in North America and the United Kingdom. The company is headquartered in Englewood, Colorado.

About Alliance Entertainment

Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.