Saga Communications (NASDAQ:SGA) vs. Liberty Global (NASDAQ:LBTYK) Critical Analysis

Liberty Global (NASDAQ:LBTYKGet Free Report) and Saga Communications (NASDAQ:SGAGet Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Liberty Global and Saga Communications”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Global $4.88 billion 0.72 -$7.14 billion ($16.00) -0.65
Saga Communications $105.77 million 0.56 -$7.90 million ($1.35) -6.87

Saga Communications has lower revenue, but higher earnings than Liberty Global. Saga Communications is trading at a lower price-to-earnings ratio than Liberty Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liberty Global and Saga Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Global -109.64% -47.65% -22.51%
Saga Communications -8.24% 3.88% 2.90%

Insider & Institutional Ownership

46.1% of Liberty Global shares are owned by institutional investors. Comparatively, 74.3% of Saga Communications shares are owned by institutional investors. 9.9% of Liberty Global shares are owned by company insiders. Comparatively, 22.4% of Saga Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Liberty Global has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Saga Communications has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Liberty Global and Saga Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Global 1 0 0 0 1.00
Saga Communications 1 2 0 0 1.67

Summary

Saga Communications beats Liberty Global on 8 of the 12 factors compared between the two stocks.

About Liberty Global

(Get Free Report)

Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.

About Saga Communications

(Get Free Report)

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

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