GCI Liberty (NASDAQ:GLIBA) and Telefónica (NYSE:TEF) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
Earnings & Valuation
This table compares GCI Liberty and Telefónica's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| GCI Liberty | $894.73 million | 10.85 | $1.94 billion | ($4.09) | -22.43 |
| Telefónica | $54.24 billion | 0.42 | $1.28 billion | $0.73 | 5.95 |
GCI Liberty has higher earnings, but lower revenue than Telefónica. GCI Liberty is trading at a lower price-to-earnings ratio than Telefónica, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares GCI Liberty and Telefónica's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| GCI Liberty | 161.18% | 5.31% | 2.76% |
| Telefónica | 1.01% | 14.31% | 2.68% |
Risk & Volatility
GCI Liberty has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Telefónica has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for GCI Liberty and Telefónica, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| GCI Liberty | 0 | 0 | 3 | 0 | 3.00 |
| Telefónica | 3 | 12 | 2 | 0 | 1.94 |
GCI Liberty presently has a consensus target price of $101.3333, suggesting a potential upside of 10.47%. Telefónica has a consensus target price of $5.00, suggesting a potential upside of 15.21%. Given Telefónica's higher possible upside, analysts plainly believe Telefónica is more favorable than GCI Liberty.
Institutional and Insider Ownership
82.8% of GCI Liberty shares are held by institutional investors. Comparatively, 0.9% of Telefónica shares are held by institutional investors. 8.2% of GCI Liberty shares are held by company insiders. Comparatively, 0.0% of Telefónica shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
GCI Liberty beats Telefónica on 9 of the 14 factors compared between the two stocks.
