Analyzing Live Nation (LYV) and Dover Motorsports (DVD)

Live Nation (NYSE: LYV) and Dover Motorsports (NYSE:DVD) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

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This table compares Live Nation and Dover Motorsports’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Live Nation -0.24% -1.71% -0.32%
Dover Motorsports 18.03% 7.31% 4.71%

Insider and Institutional Ownership

69.1% of Live Nation shares are owned by institutional investors. Comparatively, 24.6% of Dover Motorsports shares are owned by institutional investors. 4.8% of Live Nation shares are owned by insiders. Comparatively, 50.3% of Dover Motorsports shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Dover Motorsports pays an annual dividend of $0.08 per share and has a dividend yield of 4.0%. Live Nation does not pay a dividend. Dover Motorsports pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Live Nation has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Dover Motorsports has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Valuation & Earnings

This table compares Live Nation and Dover Motorsports’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Live Nation $10.34 billion 0.79 -$97.64 million ($0.48) -82.08
Dover Motorsports $46.74 million 1.59 $8.42 million $0.10 20.20

Dover Motorsports has lower revenue, but higher earnings than Live Nation. Live Nation is trading at a lower price-to-earnings ratio than Dover Motorsports, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Live Nation and Dover Motorsports, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Live Nation 0 1 7 0 2.88
Dover Motorsports 0 0 1 0 3.00

Live Nation currently has a consensus target price of $49.33, indicating a potential upside of 25.21%. Given Live Nation’s higher possible upside, equities analysts clearly believe Live Nation is more favorable than Dover Motorsports.

Summary

Dover Motorsports beats Live Nation on 10 of the 16 factors compared between the two stocks.

Live Nation Company Profile

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.

Dover Motorsports Company Profile

Dover Motorsports, Inc. markets and promotes motorsports entertainment in the United States. It owns and operates Dover International Speedway in Dover, Delaware; and Nashville Superspeedway near Nashville, Tennessee. The company was formerly known as Dover Downs Entertainment, Inc. Dover Motorsports, Inc. was founded in 1969 and is based in Dover, Delaware.

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