Manchester United F.C. (MANU) and Live Nation (LYV) Critical Analysis

Manchester United F.C. (NYSE: MANU) and Live Nation (NYSE:LYV) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

How to Become a New Pot Stock Millionaire

This table compares Manchester United F.C. and Live Nation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manchester United F.C. $737.29 million 1.04 $49.68 million $0.27 70.56
Live Nation $10.34 billion 0.78 -$97.64 million ($0.48) -80.19

Manchester United F.C. has higher earnings, but lower revenue 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.

Volatility & Risk

Manchester United F.C. has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Live Nation has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares Manchester United F.C. and Live Nation’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%
Live Nation -0.24% -1.71% -0.32%

Dividends

Manchester United F.C. pays an annual dividend of $0.18 per share and has a dividend yield of 0.9%. 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 raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Manchester United F.C. and Live Nation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manchester United F.C. 0 0 2 0 3.00
Live Nation 0 1 7 0 2.88

Manchester United F.C. presently has a consensus price target of $20.50, indicating a potential upside of 7.61%. Live Nation has a consensus price target of $49.33, indicating a potential upside of 28.17%. Given Live Nation’s higher possible upside, analysts plainly believe Live Nation is more favorable than Manchester United F.C..

Insider and Institutional Ownership

87.1% of Manchester United F.C. shares are held by institutional investors. Comparatively, 69.1% of Live Nation shares are held by institutional investors. 4.8% of Live Nation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Manchester United F.C. beats Live Nation on 10 of the 16 factors compared between the two stocks.

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.

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.

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

Leave a Reply