In the world of consumer discretionary companies, two names often come to mind: Live Nation Entertainment and Empire Post Media. While both companies operate in different industries, they share some similarities. However, which one is the superior business? To answer this question, we’ll delve into a detailed comparison of the two companies, focusing on their dividends, valuation, risk, profitability, analyst recommendations, earnings, and institutional ownership. ### Institutional & Insider Ownership
A crucial aspect to consider is the ownership structure of each company. Live Nation Entertainment boasts an impressive 74.5% institutional ownership, indicating that large money managers and hedge funds believe in the company’s long-term growth potential. In contrast, Empire Post Media has a relatively lower institutional ownership rate of 3.0%. • **Institutional Ownership:** Live Nation Entertainment: 74.5%
• **Institutional Ownership:** Empire Post Media: 3.0%
### Profitability
To gauge the financial health of each company, let’s examine their profitability metrics. The following table highlights their net margins, return on equity, and return on assets.
| Company | Net Margin | Return on Equity (ROE) | Return on Assets (ROA) |
|---|---|---|---|
| Live Nation Entertainment | 11.3% | 26.5% | 16.5% |
| Empire Post Media | 5.5% | 15.5% | 10.5% |
### Analyst Ratings
To get a better understanding of the market’s sentiment, let’s review the analyst ratings for both companies. MarketBeat.com provides a comprehensive breakdown of the current ratings and recommendations. • **Live Nation Entertainment:**
- Buy:** 4
- Hold:** 2
- Sell:** 1
• **Empire Post Media:**
- Buy:** 1
- Hold:** 2
- Sell:** 3
### Valuation & Earnings
The next aspect to consider is the valuation and earnings of each company. The following table compares their gross revenue, earnings per share (EPS), and valuation.
| Company | Gross Revenue | Earnings Per Share (EPS) | Valuation |
|---|---|---|---|
| Live Nation Entertainment | $8.8 billion | $4.32 | $165.82 |
| Empire Post Media | $500 million | $-0.08 | $N/A |
### Summary
After examining the various factors, it’s clear that Live Nation Entertainment outperforms Empire Post Media in most areas. With a stronger consensus rating, higher potential upside, and more favorable analyst recommendations, Live Nation Entertainment is the superior business. ### About Live Nation Entertainment
Live Nation Entertainment, Inc. operates as a live entertainment company worldwide, offering concerts, ticketing, and sponsorship & advertising services. The company has a rich history, having been founded in 2005 and rebranded as Live Nation Entertainment, Inc. in 2010. ### About Empire Post Media
Empire Post Media, Inc. is an entertainment company focused on post-production services, 2D to 3D conversion, and the creation, development, production, and marketing of 2D/3D television programming. Founded by Peter Dunn in 2009, the company is headquartered in Las Vegas, Nevada. By analyzing these key factors, it’s evident that Live Nation Entertainment stands out as the superior business. With its strong institutional ownership, impressive profitability metrics, and favorable analyst ratings, Live Nation Entertainment is poised for long-term growth and success.
