LiveXLive Media (NASDAQ:LIVX) & Arcos Dorados (NYSE:ARCO) Critical Comparison

LiveXLive Media (NASDAQ:LIVX) and Arcos Dorados (NYSE:ARCO) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares LiveXLive Media and Arcos Dorados’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LiveXLive Media $65.23 million 2.58 -$41.82 million ($0.61) -3.52
Arcos Dorados $1.98 billion 0.54 -$149.45 million $0.11 45.83

LiveXLive Media has higher earnings, but lower revenue than Arcos Dorados. LiveXLive Media is trading at a lower price-to-earnings ratio than Arcos Dorados, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for LiveXLive Media and Arcos Dorados, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LiveXLive Media 0 0 3 0 3.00
Arcos Dorados 0 3 1 0 2.25

LiveXLive Media currently has a consensus target price of $8.50, suggesting a potential upside of 295.35%. Arcos Dorados has a consensus target price of $7.05, suggesting a potential upside of 39.33%. Given LiveXLive Media’s stronger consensus rating and higher probable upside, research analysts plainly believe LiveXLive Media is more favorable than Arcos Dorados.

Profitability

This table compares LiveXLive Media and Arcos Dorados’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LiveXLive Media -45.29% -391.37% -48.33%
Arcos Dorados 0.95% 13.28% 1.07%

Insider & Institutional Ownership

38.7% of LiveXLive Media shares are owned by institutional investors. Comparatively, 38.2% of Arcos Dorados shares are owned by institutional investors. 25.2% of LiveXLive Media shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

LiveXLive Media has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

LiveXLive Media Company Profile

LiveXLive Media, Inc. is a digital media company, which engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting, and music-related streaming and video content. It operates LiveXLive, a live music streaming platform; and Slacker Radio, a streaming music service, as well as produces original music-related content. The company produces, edits, curates, and streams live music events through broadband transmission over the Internet and satellite networks to its users; provides digital Internet radio and music services to users online and through original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services. It also offers an application that provides access to live events, audio streams, original episodic content, podcasts, video on demand, real-time livestreams, and social sharing of content. The Company was founded on December 28, 2009 by Robert Scott Ellin and is headquartered in Beverly Hills, CA.

Arcos Dorados Company Profile

Arcos Dorados Holdings, Inc. engages in the operation of restaurants. The firm operates and franchises McDonald’s restaurants in the food services industry through its subsidiaries. It operates through the following geographical segments: Brazil, Caribbean Division, North Latin America division (NOLAD), and South Latin America division (SLAD). The Caribbean Division geographical segment composes Aruba, Curacao, Colombia, French Guyana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the U.S. Virgin Islands of St. Croix, and St. Thomas and Venezuela. The SLAD geographical segment comprises Argentina, Chile, Ecuador, Peru, and Uruguay. The NOLAD geographical segment consists Costa Rica, Mexico, and Panama. The company was founded on August 3, 2007 and is headquartered in Montevideo, Uruguay.

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