Critical Comparison: TEGNA (NYSE:TGNA) versus Liberty Global (NASDAQ:LBTYK)

TEGNA (NYSE:TGNAGet Free Report) and Liberty Global (NASDAQ:LBTYKGet Free Report) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Institutional & Insider Ownership

92.2% of TEGNA shares are owned by institutional investors. Comparatively, 46.1% of Liberty Global shares are owned by institutional investors. 0.5% of TEGNA shares are owned by insiders. Comparatively, 9.9% of Liberty Global shares are owned by 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.

Analyst Ratings

This is a summary of recent ratings for TEGNA and Liberty Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TEGNA 0 5 1 0 2.17
Liberty Global 1 0 0 0 1.00

TEGNA presently has a consensus price target of $19.75, suggesting a potential downside of 5.55%. Given TEGNA’s stronger consensus rating and higher possible upside, equities analysts clearly believe TEGNA is more favorable than Liberty Global.

Volatility & Risk

TEGNA has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Liberty Global has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares TEGNA and Liberty Global”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TEGNA $2.71 billion 1.25 $219.86 million $1.35 15.49
Liberty Global $4.88 billion 0.84 -$7.14 billion ($20.80) -0.59

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

Profitability

This table compares TEGNA and Liberty Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TEGNA 8.11% 8.60% 3.77%
Liberty Global -146.30% -58.32% -28.23%

Summary

TEGNA beats Liberty Global on 11 of the 14 factors compared between the two stocks.

About TEGNA

(Get Free Report)

TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.

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.

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