Financial Contrast: Comcast (NASDAQ:CMCSA) & Liberty Global PLC Class A (LBTYA)

Comcast (NASDAQ: LBTYA) and Liberty Global PLC Class A (NASDAQ:LBTYA) are both large-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

80.2% of Comcast shares are held by institutional investors. Comparatively, 21.9% of Liberty Global PLC Class A shares are held by institutional investors. 1.3% of Comcast shares are held by insiders. Comparatively, 5.9% of Liberty Global PLC Class A shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Comcast and Liberty Global PLC Class A, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comcast 0 5 20 0 2.80
Liberty Global PLC Class A 3 1 11 0 2.53

Comcast presently has a consensus target price of $45.79, suggesting a potential upside of 23.79%. Liberty Global PLC Class A has a consensus target price of $39.68, suggesting a potential upside of 48.01%. Given Liberty Global PLC Class A’s higher probable upside, analysts plainly believe Liberty Global PLC Class A is more favorable than Comcast.

Dividends

Comcast pays an annual dividend of $0.76 per share and has a dividend yield of 2.1%. Liberty Global PLC Class A does not pay a dividend. Comcast pays out 36.9% of its earnings in the form of a dividend. Comcast has raised its dividend for 7 consecutive years.

Risk and Volatility

Comcast has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Liberty Global PLC Class A has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Earnings & Valuation

This table compares Comcast and Liberty Global PLC Class A’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comcast $84.53 billion 2.03 $22.71 billion $2.06 17.96
Liberty Global PLC Class A $15.05 billion 1.37 -$2.78 billion ($2.29) -11.71

Comcast has higher revenue and earnings than Liberty Global PLC Class A. Liberty Global PLC Class A is trading at a lower price-to-earnings ratio than Comcast, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Comcast and Liberty Global PLC Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comcast 27.42% 15.92% 5.66%
Liberty Global PLC Class A -11.46% -27.88% -3.31%

Summary

Comcast beats Liberty Global PLC Class A on 13 of the 17 factors compared between the two stocks.

About Comcast

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. The Cable Communications segment offers video, high-speed Internet, and voice, as well as security and automation services to residential and business customers under the XFINITY brand. This segment also provides business services, such as Ethernet network services; and cellular backhaul services to mobile network operators. The Cable Networks segment operates national cable networks, which provide entertainment, news and information, and sports content; regional sports and news networks; international cable networks; and cable television studio production operations, as well as owns various digital properties, which include brand-aligned Websites. The Broadcast Television segment operates NBC and Telemundo broadcast networks, NBC and Telemundo local broadcast television stations, broadcast television studio production operations, and various digital properties. The Filmed Entertainment segment produces, acquires, markets, and distributes filmed entertainment under the Universal Pictures, Illumination, Focus Features, and DreamWorks Animation names. This segment also develops, produces, and licenses stage plays; and distributes filmed entertainment produced by third parties. The Theme Parks segment operates Universal theme parks in Orlando, Florida, as well as in Hollywood, California; and Osaka, Japan. The company also owns the Philadelphia Flyers, as well as the Wells Fargo Center arena in Philadelphia, Pennsylvania; and operates arena management-related businesses, as well as provides wireless phone services. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.

About Liberty Global PLC Class A

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses in Europe. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, and set-top boxes. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. Additionally, it offers community Wi-Fi via routers in home, which provides access to the Internet; public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. In addition, the company provides circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers 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. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

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