Critical Comparison: Liberty Media Corporation (LSXMA) and Global Eagle Entertainment (ENT)
Liberty Media Corporation (NASDAQ: LSXMA) and Global Eagle Entertainment (NASDAQ:ENT) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Volatility and Risk
Liberty Media Corporation has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500. Comparatively, Global Eagle Entertainment has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Insider and Institutional Ownership
24.7% of Liberty Media Corporation shares are held by institutional investors. Comparatively, 93.0% of Global Eagle Entertainment shares are held by institutional investors. 3.9% of Global Eagle Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Liberty Media Corporation and Global Eagle Entertainment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Media Corporation||N/A||N/A||N/A|
|Global Eagle Entertainment||N/A||N/A||N/A|
This is a summary of recent recommendations for Liberty Media Corporation and Global Eagle Entertainment, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Media Corporation||0||3||4||0||2.57|
|Global Eagle Entertainment||0||4||1||0||2.20|
Liberty Media Corporation presently has a consensus price target of $47.40, indicating a potential upside of 7.36%. Global Eagle Entertainment has a consensus price target of $10.50, indicating a potential upside of 254.73%. Given Global Eagle Entertainment’s higher probable upside, analysts plainly believe Global Eagle Entertainment is more favorable than Liberty Media Corporation.
Valuation and Earnings
This table compares Liberty Media Corporation and Global Eagle Entertainment’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Liberty Media Corporation||$5.22 billion||0.87||$1.77 billion||$1.36||32.46|
|Global Eagle Entertainment||$486.23 million||0.52||$31.07 million||($0.34)||-8.71|
Liberty Media Corporation has higher revenue and earnings than Global Eagle Entertainment. Global Eagle Entertainment 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.
Liberty Media Corporation beats Global Eagle Entertainment on 7 of the 10 factors compared between the two stocks.
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.
Global Eagle Entertainment Company Profile
Global Eagle Entertainment Inc. is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. Its Connectivity segment provides airline partners and their passengers with Wireless Fidelity (Wi-Fi) connectivity over Ku-band satellite transmissions, and to a lesser extent operations solutions to airline customers. Its Content segment selects, manages and distributes wholly owned and licensed media content, video and music programming, applications, digital advertising solutions and games to over 150 airlines across the world, as well as to maritime and other away-from-home non-theatrical markets. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wi-Fi, movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services and e-commerce solutions.
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