iHeartMedia (NASDAQ:IHRT – Get Free Report) and Liberty Global (NASDAQ:LBTYK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Risk and Volatility
iHeartMedia has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Liberty Global has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Institutional & Insider Ownership
93.9% of iHeartMedia shares are owned by institutional investors. Comparatively, 46.1% of Liberty Global shares are owned by institutional investors. 8.5% of iHeartMedia shares are owned by insiders. Comparatively, 9.9% of Liberty Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iHeartMedia | 2 | 2 | 1 | 0 | 1.80 |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
iHeartMedia presently has a consensus price target of $4.33, indicating a potential upside of 14.34%. Given iHeartMedia’s stronger consensus rating and higher probable upside, equities analysts clearly believe iHeartMedia is more favorable than Liberty Global.
Earnings and Valuation
This table compares iHeartMedia and Liberty Global”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iHeartMedia | $3.86 billion | 0.15 | -$1.01 billion | ($2.59) | -1.46 |
| Liberty Global | $4.77 billion | 0.72 | $1.59 billion | ($6.09) | -1.68 |
Liberty Global has higher revenue and earnings than iHeartMedia. Liberty Global is trading at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares iHeartMedia and Liberty Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iHeartMedia | -10.37% | -1.63% | 0.50% |
| Liberty Global | -41.44% | -14.71% | -7.29% |
Summary
iHeartMedia beats Liberty Global on 10 of the 14 factors compared between the two stocks.
About iHeartMedia
iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web based service for radio stations, digital only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business; and provides scheduling and broadcast software and services. This segment also provides RCS, a cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. The company is headquartered in San Antonio, Texas.
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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