Liberty Sirius XM Group Series A (LSXMA) and TIM Participacoes (NYSE:TSU) Critical Survey

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TIM Participacoes (NYSE:TSU) and Liberty Sirius XM Group Series A (NASDAQ:LSXMA) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Dividends

TIM Participacoes pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Liberty Sirius XM Group Series A does not pay a dividend. TIM Participacoes pays out 10.0% of its earnings in the form of a dividend.

Profitability

This table compares TIM Participacoes and Liberty Sirius XM Group Series A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIM Participacoes 8.81% 8.01% 4.55%
Liberty Sirius XM Group Series A N/A N/A N/A

Insider and Institutional Ownership

14.9% of TIM Participacoes shares are owned by institutional investors. Comparatively, 26.5% of Liberty Sirius XM Group Series A shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

TIM Participacoes has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Liberty Sirius XM Group Series A has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.

Valuation & Earnings

This table compares TIM Participacoes and Liberty Sirius XM Group Series A’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TIM Participacoes $3.21 billion 2.28 $386.64 million $0.80 18.86
Liberty Sirius XM Group Series A $5.43 billion 2.48 $1.09 billion $3.31 12.28

Liberty Sirius XM Group Series A has higher revenue and earnings than TIM Participacoes. Liberty Sirius XM Group Series A is trading at a lower price-to-earnings ratio than TIM Participacoes, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TIM Participacoes and Liberty Sirius XM Group Series A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIM Participacoes 0 6 4 0 2.40
Liberty Sirius XM Group Series A 0 1 8 0 2.89

TIM Participacoes presently has a consensus target price of $18.50, suggesting a potential upside of 22.60%. Liberty Sirius XM Group Series A has a consensus target price of $59.38, suggesting a potential upside of 46.03%. Given Liberty Sirius XM Group Series A’s stronger consensus rating and higher probable upside, analysts clearly believe Liberty Sirius XM Group Series A is more favorable than TIM Participacoes.

Summary

Liberty Sirius XM Group Series A beats TIM Participacoes on 10 of the 15 factors compared between the two stocks.

About TIM Participacoes

TIM Participações S.A. provides telecommunication services in Brazil. The company offers mobile voice and data, broadband Internet access, value-added, and other telecommunications services and products. It provides prepaid and postpaid services; value-added services, including short message services or text messaging, and multimedia messaging services; and insurance services. The company also sells various mobile handsets and accessories through its dealer network, which includes its own stores, exclusive franchises, and authorized dealers; and offers co-billing services to other telecommunication service providers. As of December 31, 2017, it served a subscriber base of 58.6 million customers; and had approximately 12.2 thousand points of sales, including 156 company owned stores, as well as had approximately 310 thousand points of sales to access prepaid phone services through supermarkets, newsstands, and other small retailers. The company was formerly known as Tele Celular Sul Participações S.A. and changed its name to TIM Participações S.A. in August 2004. The company was founded in 1998 and is headquartered in Rio de Janeiro, Brazil. TIM Participações S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.

About Liberty Sirius XM Group Series A

The Liberty SiriusXM Group, through its subsidiary Sirius XM Holdings Inc., transmits music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States and Canada. The company also provides infotainment services; and Sirius XM on Demand over its Internet radio service through applications for mobile and home devices, and other consumer electronic equipment. In addition, it offers connected vehicle services; and Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings. Further, the company engages in the direct sale of satellite radios and accessories. It distributes its satellite radios through automakers, as well as through its retailers and Website; and satellite radio services to satellite radios. As of December 31, 2017, it had approximately 32.7 million subscribers. The company is based in Englewood, Colorado. The Liberty SiriusXM Group is a subsidiary of Liberty Media Corporation.

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