Critical Comparison: Restaurant Brands International (QSR) vs. Livexlive Media (LIVX)

Restaurant Brands International (NYSE:QSR) and Livexlive Media (NASDAQ:LIVX) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Dividends

Restaurant Brands International pays an annual dividend of $1.80 per share and has a dividend yield of 2.8%. Livexlive Media does not pay a dividend. Restaurant Brands International pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Restaurant Brands International has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings for Restaurant Brands International and Livexlive Media, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Restaurant Brands International 0 2 12 0 2.86
Livexlive Media 0 0 3 0 3.00

Restaurant Brands International currently has a consensus price target of $69.37, suggesting a potential upside of 7.61%. Livexlive Media has a consensus price target of $8.00, suggesting a potential upside of 40.60%. Given Livexlive Media’s stronger consensus rating and higher possible upside, analysts plainly believe Livexlive Media is more favorable than Restaurant Brands International.

Valuation & Earnings

This table compares Restaurant Brands International and Livexlive Media’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Restaurant Brands International $4.58 billion 3.54 $648.80 million $2.10 30.70
Livexlive Media $7.20 million 41.09 -$23.33 million ($0.48) -11.85

Restaurant Brands International has higher revenue and earnings than Livexlive Media. Livexlive Media is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

81.1% of Restaurant Brands International shares are held by institutional investors. Comparatively, 17.7% of Livexlive Media shares are held by institutional investors. 3.8% of Restaurant Brands International shares are held by insiders. Comparatively, 37.0% of Livexlive Media shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Restaurant Brands International has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Livexlive Media has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares Restaurant Brands International and Livexlive Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Restaurant Brands International 12.76% 28.42% 5.92%
Livexlive Media N/A -99.85% -50.01%

Summary

Restaurant Brands International beats Livexlive Media on 12 of the 17 factors compared between the two stocks.

Restaurant Brands International Company Profile

Restaurant Brands International Inc. owns, operates, and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK) brand names. The company operates through three segments: TH, BK, and PLK. Its restaurants offer blend coffee, tea, espresso-based hot and cold specialty drinks, donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other food items. As of December 31, 2017, the company owned or franchised a total of 4,748 TH restaurants, 16,767 BK restaurants, and 2,892 PLK restaurants in approximately 100 countries and U.S. territories worldwide. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Oakville, Canada.

Livexlive Media Company Profile

LiveXLive Media, Inc. engages in the acquisition, distribution, and monetization of live music, Internet radio, and music-related streaming and video content. The company operates LiveXLive, a live music streaming platform, as well as Slacker Radio, a streaming music service; and produces original music-related content. It also produces, edits, curates, and streams live music events through broadband transmission over the Internet and or 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. The company was formerly known as Loton, Corp. and changed its name to LiveXLive Media, Inc. in August 2017. LiveXLive Media, Inc. was founded in 2009 and is headquartered in West Hollywood, California.

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