Contrasting Altice USA (NYSE:ATUS) & Liberty Latin America (LILA)

Altice USA (NYSE:ATUS) and Liberty Latin America (NASDAQ:LILA) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

37.2% of Altice USA shares are owned by institutional investors. Comparatively, 22.4% of Liberty Latin America shares are owned by institutional investors. 2.0% of Altice USA shares are owned by company insiders. Comparatively, 8.4% of Liberty Latin America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Altice USA has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Profitability

This table compares Altice USA and Liberty Latin America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altice USA 21.73% -3.14% -0.45%
Liberty Latin America N/A N/A N/A

Valuation and Earnings

This table compares Altice USA and Liberty Latin America’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altice USA $9.33 billion 1.46 $1.52 billion $0.02 923.50
Liberty Latin America $3.59 billion 0.93 -$70.26 million ($0.41) -47.29

Altice USA has higher revenue and earnings than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Altice USA, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Altice USA and Liberty Latin America, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altice USA 0 2 15 1 2.94
Liberty Latin America 0 4 1 0 2.20

Altice USA currently has a consensus target price of $24.98, suggesting a potential upside of 35.25%. Liberty Latin America has a consensus target price of $25.67, suggesting a potential upside of 32.37%. Given Altice USA’s stronger consensus rating and higher probable upside, analysts clearly believe Altice USA is more favorable than Liberty Latin America.

Summary

Altice USA beats Liberty Latin America on 11 of the 15 factors compared between the two stocks.

About Altice USA

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States. The company operates in two segments, Cablevision and Cequel. It delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content, and advertising services to approximately 4.9 million residential and business customers. The company also offers wireless routers and Internet security software; and pay television services, which include delivery of broadcast stations and cable networks, and advanced digital pay television services, such as video-on-demand, high-definition channels, digital video recorder, and pay-per-view. In addition, it provides Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony, managed Wi-Fi, managed desktop and server backup services; managed collaboration services, including audio and Web conferencing; managed services, including business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; data-driven television, digital, and other multi-platform advertising services; and data-driven and audience-based advertising solutions. Further, the company operates local news channels, as well as traffic and weather channels; News12.com, a destination for local news on the Web; and News 12 To Go, a mobile app for phones and tablets. Altice USA, Inc. is headquartered in Long Island City, New York. Altice USA, Inc. operates independently of Altice N.V. as of June 8, 2018.

About Liberty Latin America

Liberty Latin America Ltd. provides various telecommunications services. Its services primarily include video, broadband Internet, fixed-line telephony, and mobile services. The company offers communications and entertainment services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. It also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. The company provides its services in 18 countries in Latin America and the Caribbean under the brands of C&W, BTC, Flow, Móvil, VTR, and Liberty. Liberty Latin America Ltd. was incorporated in 2017 and is based in Denver, Colorado.

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