Liberty Latin America (NASDAQ:LILAK) and Liberty Broadband (NASDAQ:LBRDA) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Valuation & Earnings
This table compares Liberty Latin America and Liberty Broadband's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Liberty Latin America | $3.87 billion | 0.83 | N/A | N/A | N/A |
Liberty Broadband | $14.86 million | 2,009.31 | $117.22 million | $0.64 | 238.86 |
Liberty Broadband has lower revenue, but higher earnings than Liberty Latin America.
Profitability
This table compares Liberty Latin America and Liberty Broadband's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Liberty Latin America | N/A | N/A | N/A |
Liberty Broadband | 1,375.63% | 2.12% | 1.81% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Liberty Latin America and Liberty Broadband, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Liberty Latin America | 0 | 1 | 3 | 0 | 2.75 |
Liberty Broadband | 0 | 0 | 4 | 0 | 3.00 |
Liberty Latin America presently has a consensus price target of $14.3333, suggesting a potential upside of 3.04%. Liberty Broadband has a consensus price target of $185.3333, suggesting a potential upside of 21.24%. Given Liberty Broadband's stronger consensus rating and higher possible upside, analysts clearly believe Liberty Broadband is more favorable than Liberty Latin America.
Insider & Institutional Ownership
58.1% of Liberty Latin America shares are owned by institutional investors. Comparatively, 12.1% of Liberty Broadband shares are owned by institutional investors. 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 company will outperform the market over the long term.
Risk and Volatility
Liberty Latin America has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Liberty Broadband has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Summary
Liberty Broadband beats Liberty Latin America on 9 of the 12 factors compared between the two stocks.