Financial Analysis: Liberty Global (LBTYK) and Its Peers

Liberty Global (NASDAQ:LBTYK – Get Free Report) is one of 257 public companies in the “Media” industry, but how does it compare to its rivals? We will compare Liberty Global to similar businesses based on the strength of its analyst recommendations, earnings, valuation, institutional ownership, profitability, risk and dividends.

Profitability

This table compares Liberty Global and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Global -44.40% -25.14% -9.55%
Liberty Global Competitors -19.17% -48.96% -4.96%

Risk & Volatility

Liberty Global has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Liberty Global’s rivals have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

46.1% of Liberty Global shares are owned by institutional investors. Comparatively, 38.1% of shares of all “Media” companies are owned by institutional investors. 9.9% of Liberty Global shares are owned by company insiders. Comparatively, 17.5% of shares of all “Media” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Liberty Global and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Liberty Global $4.88 billion -$7.14 billion -1.40
Liberty Global Competitors $2.97 billion $35.12 million -1.78

Liberty Global has higher revenue, but lower earnings than its rivals. Liberty Global is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Liberty Global and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Global 1 0 0 0 1.00
Liberty Global Competitors 2341 6935 10789 491 2.46

As a group, “Media” companies have a potential upside of 29.57%. Given Liberty Global’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Liberty Global has less favorable growth aspects than its rivals.

Summary

Liberty Global rivals beat Liberty Global on 8 of the 12 factors compared.

About Liberty Global

(Get Free Report)

Liberty Global is an international telecommunications company focused on broadband, video and mobile services. It provides connectivity and entertainment to residential and business customers through operating companies and joint ventures, including Virgin Media O2 in the United Kingdom, VodafoneZiggo in the Netherlands, Telenet in Belgium and Sunrise in Switzerland. The company traces its roots to the 2005 merger of UnitedGlobalCom and Liberty Media International. In addition to its telecommunications businesses, Liberty Global invests in communications infrastructure and technology companies.

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