Critical Comparison: SPAR Group (NASDAQ:SGRP) and Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB)

Liberty Media Corporation – Liberty Formula One Series B (OTCMKTS:FWONB) and SPAR Group (NASDAQ:SGRP) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares Liberty Media Corporation – Liberty Formula One Series B and SPAR Group”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 Formula One Series B	$4.48 billion	5.03	$603.00 million	$2.18	41.28
SPAR Group	$132.58 million	0.14	-$24.63 million	($1.03)	-0.63

Liberty Media Corporation – Liberty Formula One Series B has higher revenue and earnings than SPAR Group. SPAR Group is trading at a lower price-to-earnings ratio than Liberty Media Corporation – Liberty Formula One Series B, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liberty Media Corporation – Liberty Formula One Series B and SPAR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Media Corporation – Liberty Formula One Series B	13.85%	N/A	N/A
SPAR Group	-18.51%	-107.74%	-19.90%

Analyst Recommendations

This is a breakdown of current ratings for Liberty Media Corporation – Liberty Formula One Series B and SPAR Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Media Corporation – Liberty Formula One Series B	0	0	0	0	0.00
SPAR Group	1	0	0	0	1.00

Insider & Institutional Ownership

1.0% of Liberty Media Corporation – Liberty Formula One Series B shares are held by institutional investors. Comparatively, 9.6% of SPAR Group shares are held by institutional investors. 4.3% of Liberty Media Corporation – Liberty Formula One Series B shares are held by insiders. Comparatively, 43.0% of SPAR Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Liberty Media Corporation – Liberty Formula One Series B has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Summary

Liberty Media Corporation – Liberty Formula One Series B beats SPAR Group on 9 of the 12 factors compared between the two stocks.

About Liberty Media Corporation – Liberty Formula One Series B

Formula One Group, through its subsidiary Formula 1, engages in the motorsports business in the United States and internationally. The company holds commercial rights for the FIA Formula One 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. It is also involved in the operation of the Formula 1 Paddock Club hospitality program; and provision of freight, logistical, and travel related services for the teams and other third parties, as well as the F2 and F3 race series. The company was founded in 1950 and is based in Englewood, Colorado. Formula One Group operates as a subsidiary of Liberty Media Corporation.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.