Liberty Global (NASDAQ:LBTYB) and Twenty-First Century Fox (NASDAQ:FOXA) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional and Insider Ownership
51.0% of Twenty-First Century Fox shares are owned by institutional investors. 6.5% of Liberty Global shares are owned by insiders. Comparatively, 17.5% of Twenty-First Century Fox shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Liberty Global and Twenty-First Century Fox, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Twenty-First Century Fox||0||6||12||0||2.67|
Twenty-First Century Fox has a consensus price target of $48.14, indicating a potential downside of 1.29%. Given Twenty-First Century Fox’s higher possible upside, analysts clearly believe Twenty-First Century Fox is more favorable than Liberty Global.
This table compares Liberty Global and Twenty-First Century Fox’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Twenty-First Century Fox||16.01%||18.01%||6.91%|
Valuation & Earnings
This table compares Liberty Global and Twenty-First Century Fox’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Liberty Global||$15.05 billion||1.14||-$2.78 billion||N/A||N/A|
|Twenty-First Century Fox||$30.40 billion||2.97||$4.46 billion||$1.97||24.76|
Twenty-First Century Fox has higher revenue and earnings than Liberty Global.
Risk & Volatility
Liberty Global has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Twenty-First Century Fox has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Liberty Global does not pay a dividend. Twenty-First Century Fox pays out 18.3% of its earnings in the form of a dividend. Twenty-First Century Fox has increased its dividend for 5 consecutive years.
Twenty-First Century Fox beats Liberty Global on 12 of the 14 factors compared between the two stocks.
Liberty Global Company Profile
Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses in Europe. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, and set-top boxes. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. Additionally, it offers community Wi-Fi via routers in home, which provides access to the Internet; public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. In addition, the company provides circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.
Twenty-First Century Fox Company Profile
Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company primarily in the United States and Canada, Europe, and internationally. It operates through Cable Network Programming, Television, and Filmed Entertainment segments. The company produces and licenses news, business news, sports, general entertainment, factual entertainment, and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunication companies, and online video distributors. It also broadcasts network programming; and operates 28 broadcast television stations, including 11 duopolies in the United States. In addition, the company produces and acquires live-action and animated motion pictures for distribution and licensing in various formats in entertainment media, as well as produces and licenses television programming. The company was formerly known as News Corporation. Twenty-First Century Fox, Inc. was founded in 1922 and is headquartered in New York, New York.
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