Altice USA (NYSE:ATUS) and Liberty Broadband (NASDAQ:LBRDK) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
Profitability
This table compares Altice USA and Liberty Broadband's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Altice USA | 1.08% | 25.67% | 1.09% |
Liberty Broadband | 1,375.63% | 2.12% | 1.81% |
Insider & Institutional Ownership
58.7% of Altice USA shares are owned by institutional investors. Comparatively, 56.0% of Liberty Broadband shares are owned by institutional investors. 46.4% of Altice USA shares are owned by company insiders. Comparatively, 10.8% 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.
Earnings and Valuation
This table compares Altice USA and Liberty Broadband's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Altice USA | $9.76 billion | 1.57 | $138.94 million | $0.50 | 64.84 |
Liberty Broadband | $14.86 million | 1,792.28 | $117.22 million | $0.64 | 233.14 |
Altice USA has higher revenue and earnings than Liberty Broadband. Altice USA is trading at a lower price-to-earnings ratio than Liberty Broadband, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Altice USA has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Liberty Broadband has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Altice USA and Liberty Broadband, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Altice USA | 0 | 4 | 12 | 1 | 2.82 |
Liberty Broadband | 0 | 1 | 3 | 0 | 2.75 |
Altice USA presently has a consensus price target of $39.2667, suggesting a potential upside of 21.12%. Liberty Broadband has a consensus price target of $175.75, suggesting a potential upside of 17.79%. Given Altice USA's stronger consensus rating and higher possible upside, analysts clearly believe Altice USA is more favorable than Liberty Broadband.
Summary
Altice USA beats Liberty Broadband on 11 of the 15 factors compared between the two stocks.