Critical Comparison: Wanda Sports Group (NASDAQ:WSG) versus Live Nation Entertainment (NYSE:LYV)

Wanda Sports Group (NASDAQ:WSG) and Live Nation Entertainment (NYSE:LYV) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Volatility and Risk

Wanda Sports Group has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Live Nation Entertainment has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Wanda Sports Group and Live Nation Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wanda Sports Group 0 0 0 0 N/A
Live Nation Entertainment 0 4 5 0 2.56

Live Nation Entertainment has a consensus price target of $59.75, indicating a potential downside of 9.89%. Given Live Nation Entertainment’s higher probable upside, analysts clearly believe Live Nation Entertainment is more favorable than Wanda Sports Group.

Institutional & Insider Ownership

1.9% of Wanda Sports Group shares are owned by institutional investors. Comparatively, 69.8% of Live Nation Entertainment shares are owned by institutional investors. 5.5% of Live Nation Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Wanda Sports Group and Live Nation Entertainment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wanda Sports Group $1.16 billion 0.25 -$308.72 million ($2.45) -0.87
Live Nation Entertainment $11.55 billion 1.25 $69.89 million ($0.02) -3,315.50

Live Nation Entertainment has higher revenue and earnings than Wanda Sports Group. Live Nation Entertainment is trading at a lower price-to-earnings ratio than Wanda Sports Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wanda Sports Group and Live Nation Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wanda Sports Group -48.51% -108.31% -15.76%
Live Nation Entertainment -9.36% -61.92% -6.83%

Summary

Live Nation Entertainment beats Wanda Sports Group on 12 of the 13 factors compared between the two stocks.

About Wanda Sports Group

Wanda Sports Group Company Limited operates as a sports events, media, and marketing platform worldwide. It operates through three segments: Spectator Sports; Digital, Production, Sports Solutions (DPSS); and Mass Participation. The Spectator Sports segment monetizes rights acquired from rights owners under contractual arrangements through media distribution, sponsorship, and marketing activities; and provides services to its rights-in partners and rights-out clients covering event operation and support, media production, digital solutions, and ancillary services. This segment includes sports, such as football, and winter and summer sports. The DPSS segment offers a suite of specialized sports-related services, including digital media solutions, media and program production, host broadcasting, marketing, event operations, brand development, and advertising solutions. The Mass Participation segment organizes, operates, and monetizes a range of mass participation sports, including triathlon, running, mountain biking, road cycling, obstacle course racing, and trail running through a portfolio of brands and other intellectual property. It also engages in the rights distribution, broadcast hosting, digital media and entertainment, program production, event operations and licensing, and brand development and sponsorship activities. The company was founded in 2018 and is headquartered in Beijing, the People's Republic of China. Wanda Sports Group Company Limited is a subsidiary of Wanda Sports & Media (Hong Kong) Holding Co. Ltd.

About Live Nation Entertainment

Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned 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 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. 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. It sells tickets through Websites, mobile apps, ticket outlets, and telephone call centers. 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 or programs for specific brands. As of December 31, 2019, it owned, operated, or leased 143 entertainment venues in North America and 79 entertainment venues 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.

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