Charter Communications (NASDAQ:CHTR) and Liberty Broadband (NASDAQ:LBRDA) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations and price targets for Charter Communications and Liberty Broadband, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Charter Communications | 0 | 5 | 19 | 1 | 2.84 |
Liberty Broadband | 0 | 1 | 3 | 0 | 2.75 |
Charter Communications presently has a consensus price target of $655.44, indicating a potential upside of 1.10%. Liberty Broadband has a consensus price target of $178.6667, indicating a potential upside of 15.83%. Given Liberty Broadband's higher probable upside, analysts plainly believe Liberty Broadband is more favorable than Charter Communications.
Insider and Institutional Ownership
70.1% of Charter Communications shares are owned by institutional investors. Comparatively, 12.1% of Liberty Broadband shares are owned by institutional investors. 1.2% of Charter Communications shares are owned by company insiders. Comparatively, 6.3% of Liberty Broadband shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Charter Communications has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Liberty Broadband has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Profitability
This table compares Charter Communications and Liberty Broadband's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Charter Communications | 5.70% | 7.50% | 1.87% |
Liberty Broadband | 1,375.63% | 2.12% | 1.81% |
Valuation & Earnings
This table compares Charter Communications and Liberty Broadband's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Charter Communications | $45.76 billion | 2.83 | $1.67 billion | $7.54 | 86.03 |
Liberty Broadband | $14.86 million | 1,856.18 | $117.22 million | $0.64 | 241.45 |
Charter Communications has higher revenue and earnings than Liberty Broadband. Charter Communications is trading at a lower price-to-earnings ratio than Liberty Broadband, indicating that it is currently the more affordable of the two stocks.
Summary
Charter Communications beats Liberty Broadband on 9 of the 15 factors compared between the two stocks.