Critical Analysis: Liberty Global PLC (LILA) versus Charter Communications (NASDAQ:CHTR)
Charter Communications (NASDAQ: CHTR) and Liberty Global PLC (NASDAQ:LILA) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitabiliy, risk, dividends, earnings and institutional ownership.
Volatility & Risk
Charter Communications has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Liberty Global PLC has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Charter Communications and Liberty Global PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Global PLC||0||2||4||0||2.67|
Charter Communications currently has a consensus target price of $339.59, suggesting a potential downside of 2.99%. Liberty Global PLC has a consensus target price of $30.50, suggesting a potential upside of 20.32%. Given Liberty Global PLC’s stronger consensus rating and higher possible upside, analysts plainly believe Liberty Global PLC is more favorable than Charter Communications.
Valuation and Earnings
This table compares Charter Communications and Liberty Global PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Charter Communications||$36.64 billion||2.56||$13.48 billion||$17.88||19.58|
|Liberty Global PLC||$3.33 billion||1.31||$1.29 billion||($2.74)||-9.25|
Charter Communications has higher revenue and earnings than Liberty Global PLC. Liberty Global PLC is trading at a lower price-to-earnings ratio than Charter Communications, indicating that it is currently the more affordable of the two stocks.
This table compares Charter Communications and Liberty Global PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Global PLC||N/A||N/A||N/A|
Institutional and Insider Ownership
74.5% of Charter Communications shares are held by institutional investors. Comparatively, 20.9% of Liberty Global PLC shares are held by institutional investors. 0.6% of Charter Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Charter Communications beats Liberty Global PLC on 10 of the 13 factors compared between the two stocks.
Charter Communications Company Profile
Charter Communications, Inc. (Charter) is a provider of cable services, offering various entertainments, information and communications solutions to residential and commercial customers. The Company’s services include Video Services, Internet Services, Voice Services, Commercial Services and Advertising Services. Its infrastructure consists of a hybrid of fiber and coaxial cable plant with approximately 12.8 million estimated passings, with over 98% at approximately 550 megahertz (MHz) or greater, over 99% of plant miles two-way active and approximately 100% of plant all-digital. It sells its video, Internet and voice services primarily on a subscription basis, often in a bundle of two or more services. It offers Charter Spectrum brand in its all-digital markets. Digital video enables its customers to access advanced video services, such as high definition (HD) television, video on demand programming, an interactive program guide and digital video recorder (DVR) service.
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