Reviewing Livexlive Media (NASDAQ:LIVX) and Cheesecake Factory (NASDAQ:CAKE)

Livexlive Media (NASDAQ:LIVX) and Cheesecake Factory (NASDAQ:CAKE) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Livexlive Media and Cheesecake Factory’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Livexlive Media -105.60% -297.90% -63.35%
Cheesecake Factory 4.52% 21.31% 7.13%

Institutional & Insider Ownership

20.6% of Livexlive Media shares are owned by institutional investors. 36.7% of Livexlive Media shares are owned by company insiders. Comparatively, 8.5% of Cheesecake Factory shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Livexlive Media and Cheesecake Factory, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Livexlive Media 0 1 3 0 2.75
Cheesecake Factory 1 8 3 0 2.17

Livexlive Media presently has a consensus target price of $6.13, indicating a potential upside of 271.21%. Cheesecake Factory has a consensus target price of $49.58, indicating a potential upside of 26.91%. Given Livexlive Media’s stronger consensus rating and higher probable upside, equities analysts clearly believe Livexlive Media is more favorable than Cheesecake Factory.

Volatility & Risk

Livexlive Media has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Cheesecake Factory has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Dividends

Cheesecake Factory pays an annual dividend of $1.44 per share and has a dividend yield of 3.7%. Livexlive Media does not pay a dividend. Cheesecake Factory pays out 59.3% of its earnings in the form of a dividend. Cheesecake Factory has increased its dividend for 6 consecutive years.

Earnings and Valuation

This table compares Livexlive Media and Cheesecake Factory’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Livexlive Media $33.70 million 2.82 -$37.76 million ($0.72) -2.29
Cheesecake Factory $2.33 billion 0.75 $99.04 million $2.43 16.08

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

Summary

Cheesecake Factory beats Livexlive Media on 9 of the 16 factors compared between the two stocks.

About Livexlive Media

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.

About Cheesecake Factory

The Cheesecake Factory Incorporated engages in the operation of restaurants. The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors. As of April 16, 2019, it owned and operated 219 full-service casual-dining restaurants in the United States, including Puerto Rico and Canada comprising 202 restaurants under The Cheesecake Factory name; 14 restaurants under the Grand Lux Café name; and 2 restaurants under the RockSugar Southeast Asian Kitchen name, as well as 22 The Cheesecake Factory restaurants under licensing agreements internationally. The company was founded in 1972 and is headquartered in Calabasas, California.

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