Liberty Global (NASDAQ:LBTYK – Get Free Report) and Cardlytics (NASDAQ:CDLX – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Profitability
This table compares Liberty Global and Cardlytics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Global | -62.12% | -28.83% | -13.28% |
| Cardlytics | -55.92% | -956.56% | -38.39% |
Volatility and Risk
Liberty Global has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Cardlytics has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
Institutional and Insider Ownership
46.1% of Liberty Global shares are held by institutional investors. Comparatively, 68.1% of Cardlytics shares are held by institutional investors. 9.9% of Liberty Global shares are held by company insiders. Comparatively, 5.9% of Cardlytics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Liberty Global and Cardlytics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
| Cardlytics | 2 | 1 | 0 | 0 | 1.33 |
Cardlytics has a consensus target price of $10.00, indicating a potential upside of 457.10%. Given Cardlytics’ stronger consensus rating and higher probable upside, analysts clearly believe Cardlytics is more favorable than Liberty Global.
Valuation & Earnings
This table compares Liberty Global and Cardlytics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Global | $4.88 billion | 0.54 | -$7.14 billion | ($8.98) | -0.86 |
| Cardlytics | $233.27 million | 0.04 | -$103.49 million | ($18.48) | -0.10 |
Cardlytics has lower revenue, but higher earnings than Liberty Global. Liberty Global is trading at a lower price-to-earnings ratio than Cardlytics, indicating that it is currently the more affordable of the two stocks.
Summary
Liberty Global beats Cardlytics on 7 of the 13 factors compared between the two stocks.
About Liberty Global
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 Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
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