Critical Comparison: Equal Energy (ENT) & Liberty Media Co. - Series C Liberty Formula One (FWONK)

Equal Energy (NYSE: ENT) and Liberty Media Co. – Series C Liberty Formula One (NASDAQ:FWONK) are both services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Equal Energy and Liberty Media Co. – Series C Liberty Formula One, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equal Energy	0	5	1	0	2.17
Liberty Media Co. – Series C Liberty Formula One	0	2	1	0	2.33

Equal Energy presently has a consensus price target of $8.65, indicating a potential upside of 212.27%. Liberty Media Co. – Series C Liberty Formula One has a consensus price target of $34.00, indicating a potential downside of 11.80%. Given Equal Energy’s higher possible upside, equities analysts plainly believe Equal Energy is more favorable than Liberty Media Co. – Series C Liberty Formula One.

Insider and Institutional Ownership

68.8% of Liberty Media Co. – Series C Liberty Formula One shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Equal Energy and Liberty Media Co. – Series C Liberty Formula One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equal Energy	N/A	N/A	N/A
Liberty Media Co. – Series C Liberty Formula One	N/A	0.70%	0.42%

Valuation & Earnings

This table compares Equal Energy and Liberty Media Co. – Series C Liberty Formula One’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Equal Energy	$486.23 million	0.49	$31.07 million	N/A	N/A
Liberty Media Co. – Series C Liberty Formula One	$712.00 million	11.64	$108.00 million	$0.27	142.78

Liberty Media Co. – Series C Liberty Formula One has higher revenue and earnings than Equal Energy.

Summary

Liberty Media Co. – Series C Liberty Formula One beats Equal Energy on 7 of the 8 factors compared between the two stocks.

Equal Energy Company Profile

Equal Energy Ltd. (Equal) is an exploration and production of oil and gas company. Equal’s oil and gas properties are located in Oklahoma. Equal Energy has an indirect, wholly-owned subsidiary, EEUSHI. EEUSHI holds all of Equal’s Oklahoma oil and gas properties and associated assets through its wholly owned subsidiary, Equal Energy US Inc. The Company also reviews new drilling opportunities and potential acquisitions in Oklahoma to supplement its exploration and development activities. The Company, during 2013 produced an average 6,448 boe/d and was comprised of approximately 48% natural gas 3% crude oil and 49% natural gas liquids (NGLs). As of December 31, 2013, Equal had 130 gross (110 net) producing wells, virtually all of which were operational. Equal has approximately 87,998 gross (58,108 net) total acres under lease or held by production.

Liberty Media Co. – Series C Liberty Formula One Company Profile

Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media, communications and entertainment industries. Through its subsidiaries and affiliates, the Company operates in North America. The Company’s businesses and assets include its consolidated subsidiaries SIRIUS XM and the Atlanta National League Baseball Club, Inc., and its equity affiliate Live Nation Entertainment, Inc. SIRIUS XM broadcasts music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through its two satellite radio systems. Atlanta National League Baseball Club, Inc. (ANLBC) owns and operates the Atlanta Braves Major League Baseball (MLB) franchise and five league baseball clubs. Live Nation Entertainment, Inc. (Live Nation) has four business segments: Concerts, Ticketing, Artist Nation and Sponsorship & Advertising.