Liberty Global (NASDAQ:LBTYB – Get Free Report) and Sirius XM (NASDAQ:SIRI – Get Free Report) are both mid-cap communication services companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Institutional and Insider Ownership
0.5% of Liberty Global shares are held by institutional investors. Comparatively, 10.7% of Sirius XM shares are held by institutional investors. 6.5% of Liberty Global shares are held by insiders. Comparatively, 3.3% of Sirius XM shares are held 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.
Profitability
This table compares Liberty Global and Sirius XM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Global | -62.11% | -28.82% | -13.28% |
| Sirius XM | 10.23% | 9.37% | 4.02% |
Earnings & Valuation
This table compares Liberty Global and Sirius XM”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Global | $4.88 billion | 0.75 | -$7.14 billion | ($8.98) | -1.20 |
| Sirius XM | $8.56 billion | 1.13 | $805.00 million | $2.50 | 11.47 |
Sirius XM has higher revenue and earnings than Liberty Global. Liberty Global is trading at a lower price-to-earnings ratio than Sirius XM, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Liberty Global and Sirius XM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
| Sirius XM | 3 | 8 | 8 | 0 | 2.26 |
Sirius XM has a consensus price target of $32.15, suggesting a potential upside of 12.15%. Given Sirius XM’s stronger consensus rating and higher possible upside, analysts plainly believe Sirius XM is more favorable than Liberty Global.
Volatility and Risk
Liberty Global has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Sirius XM has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Summary
Sirius XM beats Liberty Global on 13 of the 14 factors compared between the two stocks.
About Liberty Global
Liberty Global Plc is an international television and broadband company, which engages in the provision of broadband communications services. It operates through the following geographical segments: U.K. and Ireland, Belgium, Switzerland, Central and Eastern Europe, and Central and Corporate. Its products include broadband, WiFi, connectivity products, TV platforms, and TV content. The company was founded in 2004 and is headquartered in London, the United Kingdom.
About Sirius XM
Sirius XM Holdings Inc. operates as an audio entertainment company in North America. It operates in two segments, Sirius XM, and Pandora and Off-platform. The company’s Sirius XM segment provides music, sports, entertainment, comedy, talk, news, traffic and weather channels, and other content, as well as podcast and infotainment services on subscription fee basis; and live, curated, and exclusive and on demand programming services through satellite radio systems and streamed through applications for mobile and home devices, and other consumer electronic equipment. This segment also distributes satellite radios through automakers and retailers, as well as its website; podcasts, including true crime, news, politics, music, comedy, sports, and entertainment; and offers location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data, remote vehicles diagnostic, and stolen or parked vehicle locator services. In addition, this segment provides music channels on the DISH Network satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; graphic information related to road closings, traffic flow, and incident data for consumers with in-vehicle navigation systems; real-time weather services in vehicles, boats, and planes; and music programming and commercial-free music services for office, restaurants, and other business. Its Pandora and Off-platform segment operates music, comedy, and podcast streaming platform, which offers personalized experience for listener through computers, tablets, mobile devices, vehicle speakers, and connected devices; and provides advertising services. The company was incorporated in 2013 and is headquartered in New York.
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