Financial Analysis: Comcast Corporation (CMCSA) & Liberty Media Corporation (LSXMA)

Comcast Corporation (NASDAQ: CMCSA) and Liberty Media Corporation (NASDAQ:LSXMA) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Comcast Corporation and Liberty Media Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Comcast Corporation $83.97 billion 2.12 $27.79 billion $1.99 19.06
Liberty Media Corporation $5.22 billion 0.84 $1.77 billion $1.36 31.41

Comcast Corporation has higher revenue and earnings than Liberty Media Corporation. Comcast Corporation is trading at a lower price-to-earnings ratio than Liberty Media Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Comcast Corporation and Liberty Media Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comcast Corporation 0 1 22 0 2.96
Liberty Media Corporation 0 3 4 0 2.57

Comcast Corporation presently has a consensus price target of $45.83, indicating a potential upside of 21.16%. Liberty Media Corporation has a consensus price target of $47.40, indicating a potential upside of 10.96%. Given Comcast Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Comcast Corporation is more favorable than Liberty Media Corporation.

Dividends

Comcast Corporation pays an annual dividend of $0.63 per share and has a dividend yield of 1.7%. Liberty Media Corporation does not pay a dividend. Comcast Corporation pays out 31.7% of its earnings in the form of a dividend.

Profitability

This table compares Comcast Corporation and Liberty Media Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comcast Corporation 11.45% 16.80% 5.23%
Liberty Media Corporation N/A N/A N/A

Insider and Institutional Ownership

82.0% of Comcast Corporation shares are owned by institutional investors. Comparatively, 24.7% of Liberty Media Corporation shares are owned by institutional investors. 1.3% of Comcast Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Comcast Corporation has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.77, indicating that its stock price is 177% more volatile than the S&P 500.

Summary

Comcast Corporation beats Liberty Media Corporation on 13 of the 16 factors compared between the two stocks.

Comcast Corporation Company Profile

Comcast Corporation is a media and technology company. The Company has two primary businesses: Comcast Cable and NBCUniversal. Its Comcast Cable business operates in the Cable Communications segment. Its NBCUniversal business operates in four business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Its Cable Communications segment consists of the operations of Comcast Cable, which provides video, high-speed Internet and voice services to residential customers under the XFINITY brand. Its Cable Networks segment consists of a portfolio of national cable networks. Its Broadcast Television segment operates the NBC and Telemundo broadcast networks. Its Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment across the world, and it also develops, produces and licenses live stage plays. Its Theme Parks segment consists primarily of its Universal theme parks in Orlando, Florida and Hollywood, California.

Liberty Media Corporation Company Profile

Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company’s principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company’s segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems.

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