Contrasting Starz Acquisition (LCAPA) and Sinclair Broadcast Group (SBGI)
Starz Acquisition (NASDAQ: LCAPA) and Sinclair Broadcast Group (NASDAQ:SBGI) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Valuation and Earnings
This table compares Starz Acquisition and Sinclair Broadcast Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sinclair Broadcast Group||$2.82 billion||1.08||$893.47 million||$2.90||10.21|
Sinclair Broadcast Group has higher revenue and earnings than Starz Acquisition.
Institutional & Insider Ownership
83.1% of Sinclair Broadcast Group shares are owned by institutional investors. 28.2% of Sinclair Broadcast Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Starz Acquisition and Sinclair Broadcast Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sinclair Broadcast Group||9.70%||32.06%||4.29%|
This is a summary of current ratings for Starz Acquisition and Sinclair Broadcast Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sinclair Broadcast Group||0||0||5||0||3.00|
Sinclair Broadcast Group has a consensus target price of $47.00, suggesting a potential upside of 58.78%. Given Sinclair Broadcast Group’s higher probable upside, analysts clearly believe Sinclair Broadcast Group is more favorable than Starz Acquisition.
Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Starz Acquisition does not pay a dividend. Sinclair Broadcast Group pays out 24.8% of its earnings in the form of a dividend.
Sinclair Broadcast Group beats Starz Acquisition on 9 of the 10 factors compared between the two stocks.
Starz Acquisition Company Profile
Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.
Sinclair Broadcast Group Company Profile
Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.
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