Quebecor (OTCMKTS:QBCRF – Get Free Report) and Liberty Global (NASDAQ:LBTYA – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Institutional and Insider Ownership
37.2% of Liberty Global shares are held by institutional investors. 4.3% of Liberty Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Quebecor and Liberty Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quebecor | 16.30% | 33.21% | 7.17% |
| Liberty Global | -62.12% | -28.83% | -13.28% |
Valuation and Earnings
This table compares Quebecor and Liberty Global”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quebecor | $4.06 billion | 2.54 | $612.64 million | $1.46 | 31.57 |
| Liberty Global | $4.88 billion | 0.55 | -$7.14 billion | ($8.98) | -0.87 |
Quebecor has higher earnings, but lower revenue than Liberty Global. Liberty Global is trading at a lower price-to-earnings ratio than Quebecor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Quebecor and Liberty Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quebecor | 0 | 3 | 3 | 0 | 2.50 |
| Liberty Global | 1 | 4 | 1 | 0 | 2.00 |
Liberty Global has a consensus price target of $13.22, indicating a potential upside of 69.55%. Given Liberty Global’s higher possible upside, analysts plainly believe Liberty Global is more favorable than Quebecor.
Summary
Quebecor beats Liberty Global on 8 of the 12 factors compared between the two stocks.
About Quebecor
Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. The Telecommunications segment offers internet access, television distribution, mobile and wireline telephony, business solutions, and over-the-top video services. The Media segment operates an over-the-air television network and specialty television services; soundstage and equipment rental and postproduction services for the film and television industries; printing, publishing, and distribution of daily newspapers; news and entertainment digital platforms; publishing and distribution of magazines; production and distribution of audiovisual content; and out-of-home advertising business. The Sports and Entertainment segment engages in the operation and management of the Videotron Centre; show production, sporting, and cultural event management; publishing and distribution of books; production of music; and the operation of Quebec Maritimes Junior Hockey League team. The company was incorporated in 1965 and is headquartered in Montreal, Canada. Quebecor Inc. operates as a subsidiary of Les Placements Peladeau, Inc.
About Liberty Global
Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising 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. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.
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