Reviewing Liberty Latin America (LILA) & Its Peers

Liberty Latin America (NASDAQ:LILA) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it contrast to its rivals? We will compare Liberty Latin America to related companies based on the strength of its valuation, analyst recommendations, institutional ownership, dividends, profitability, risk and earnings.

Earnings and Valuation

This table compares Liberty Latin America and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Liberty Latin America	$4.44 billion	-$611.20 million	-10.58
Liberty Latin America Competitors	$12.34 billion	$893.66 million	-168.87

Liberty Latin America’s rivals have higher revenue and earnings than Liberty Latin America. Liberty Latin America is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Liberty Latin America and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Latin America	-3.86%	-17.27%	-1.41%
Liberty Latin America Competitors	-10.21%	-215.06%	-3.42%

Volatility and Risk

Liberty Latin America has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Liberty Latin America’s rivals have a beta of -4.89, suggesting that their average stock price is 589% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Liberty Latin America and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Latin America	2	1	0	0	1.33
Liberty Latin America Competitors	1762	5372	7773	385	2.44

Liberty Latin America presently has a consensus target price of $7.00, indicating a potential downside of 28.86%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 20.78%. Given Liberty Latin America’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Liberty Latin America has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

18.5% of Liberty Latin America shares are held by institutional investors. Comparatively, 32.8% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 6.2% of Liberty Latin America shares are held by company insiders. Comparatively, 18.3% of shares of all “Diversified Telecommunication Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Liberty Latin America rivals beat Liberty Latin America on 8 of the 13 factors compared.

About Liberty Latin America

Liberty Latin America is a telecommunications company that provides broadband internet, video, fixed-line telephone, mobile, and business communications services. Its residential and business customers access these services through cable, fiber, and wireless networks. The company operates across the Caribbean and Latin America, including markets such as Puerto Rico, Panama, Costa Rica, and Chile. Its services are offered under brands that include Liberty, Flow, and Más Móvil, with offerings and brand names varying by market.