Netflix (NASDAQ: NFLX) and Liberty Global PLC (NASDAQ:LILA) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitabiliy, earnings and dividends.
Risk and Volatility
Netflix has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Liberty Global PLC has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.
Earnings & Valuation
This table compares Netflix and Liberty Global PLC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Netflix||$9.51 billion||6.95||$645.06 million||$0.76||201.84|
|Liberty Global PLC||$3.33 billion||1.07||$1.29 billion||($2.74)||-7.51|
Liberty Global PLC has higher revenue, but lower earnings than Netflix. Liberty Global PLC is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Netflix and Liberty Global PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Global PLC||0||2||4||0||2.67|
Netflix currently has a consensus target price of $147.79, suggesting a potential downside of 3.66%. Liberty Global PLC has a consensus target price of $30.50, suggesting a potential upside of 48.13%. Given Liberty Global PLC’s stronger consensus rating and higher probable upside, analysts plainly believe Liberty Global PLC is more favorable than Netflix.
This table compares Netflix and Liberty Global PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Global PLC||N/A||N/A||N/A|
Institutional and Insider Ownership
82.8% of Netflix shares are held by institutional investors. Comparatively, 20.9% of Liberty Global PLC shares are held by institutional investors. 4.9% of Netflix shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Netflix beats Liberty Global PLC on 9 of the 13 factors compared between the two stocks.
Netflix, Inc. is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States. The Domestic DVD segment includes services, such as digital optical disc (DVD)-by-mail. The Company’s members can watch original series, documentaries, feature films, as well as television shows and movies directly on their Internet-connected screen, televisions, computers and mobile devices. It offers its streaming services both domestically and internationally. In the United States, its members can receive DVDs delivered to their homes. The Company had members streaming in over 190 countries, as of December 31, 2016.
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