Critical Comparison: Paramount Global (NASDAQ:PARA) versus Formula One Group (NASDAQ:FWONK)

Formula One Group (NASDAQ:FWONKGet Rating) and Paramount Global (NASDAQ:PARAGet Rating) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Formula One Group has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Paramount Global has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Formula One Group and Paramount Global, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Formula One Group 1 2 3 0 2.33
Paramount Global 1 1 1 0 2.00

Formula One Group currently has a consensus target price of $60.33, suggesting a potential downside of 1.09%. Paramount Global has a consensus target price of $35.75, suggesting a potential upside of 26.10%. Given Paramount Global’s higher probable upside, analysts clearly believe Paramount Global is more favorable than Formula One Group.

Insider and Institutional Ownership

89.5% of Formula One Group shares are owned by institutional investors. Comparatively, 63.9% of Paramount Global shares are owned by institutional investors. 0.4% of Paramount Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Formula One Group and Paramount Global’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Formula One Group $2.14 billion 6.60 $398.00 million ($0.77) -79.22
Paramount Global $28.59 billion 0.64 $4.54 billion $6.11 4.64

Paramount Global has higher revenue and earnings than Formula One Group. Formula One Group is trading at a lower price-to-earnings ratio than Paramount Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Formula One Group and Paramount Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Formula One Group -7.73% -0.97% -0.40%
Paramount Global 14.26% 7.90% 3.05%

Summary

Paramount Global beats Formula One Group on 9 of the 13 factors compared between the two stocks.

Formula One Group Company Profile (Get Rating)

Formula One Group engages in the motorsports business in the United States and internationally. It holds commercial rights for the 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. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group is a subsidiary of Liberty Media Corporation.

Paramount Global Company Profile (Get Rating)

Paramount Global operates as a media and entertainment company worldwide. The company distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; acquires or develops, and schedules programming on the CBS Television Network that includes primetime comedies and dramas, reality, specials, kids' programs, daytime dramas, game shows, and late night programs; produces or distributes talk shows, court shows, game shows, and newsmagazines; owns and operates 29 broadcast television stations; and operates CBS Sports Network, a 24-hour cable channel that provides sports and related content, as well as streaming and cable subscription services. It also operates Paramount+, a digital subscription video on-demand and live streaming services; and creates and acquires programming for distribution and viewing on various media platforms, including subscription cable networks, subscription streaming, and premium and basic cable networks. In addition, the company develops, produces, finances, acquires, and distributes films. Paramount Global was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was incorporated in 1986 and is headquartered in New York, New York.

Want More Great Investing Ideas?

Receive News & Ratings for Formula One Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Formula One Group and related companies with MarketBeat.com's FREE daily email newsletter.