iHeartMedia (NASDAQ:IHRT – Get Free Report) and Liberty Global (NASDAQ:LBTYK – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Institutional and Insider Ownership
93.9% of iHeartMedia shares are owned by institutional investors. Comparatively, 46.1% of Liberty Global shares are owned by institutional investors. 10.2% of iHeartMedia shares are owned by company insiders. Comparatively, 9.9% of Liberty Global 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.
Volatility and Risk
iHeartMedia has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500. Comparatively, Liberty Global has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Valuation & Earnings
This table compares iHeartMedia and Liberty Global”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iHeartMedia | $3.86 billion | 0.03 | -$472.87 million | ($1.82) | -0.38 |
| Liberty Global | $4.88 billion | 0.73 | -$7.14 billion | ($7.39) | -1.41 |
iHeartMedia has higher earnings, but lower revenue than Liberty Global. Liberty Global is trading at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares iHeartMedia and Liberty Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iHeartMedia | -5.68% | N/A | -3.29% |
| Liberty Global | -44.40% | -25.14% | -9.55% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for iHeartMedia and Liberty Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iHeartMedia | 3 | 1 | 0 | 0 | 1.25 |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
iHeartMedia presently has a consensus target price of $4.25, indicating a potential upside of 507.06%. Given iHeartMedia’s stronger consensus rating and higher possible upside, analysts plainly believe iHeartMedia is more favorable than Liberty Global.
Summary
iHeartMedia beats Liberty Global on 11 of the 13 factors compared between the two stocks.
About iHeartMedia
iHeartMedia is an audio media company whose businesses include broadcast radio, digital audio, podcasting, live events and advertising services. Its radio programming spans music, news, talk and sports, while its digital offerings include the iHeartRadio platform and a broad selection of podcasts. The company serves audiences and advertisers primarily in the United States. Its services also include audio advertising and marketing solutions that connect brands with listeners across broadcast and digital channels. iHeartMedia traces its roots to radio broadcasting in San Antonio and operated for many years as Clear Channel Communications.
About Liberty Global
Liberty Global is an international telecommunications company focused on broadband, video and mobile services. It provides connectivity and entertainment to residential and business customers through operating companies and joint ventures, including Virgin Media O2 in the United Kingdom, VodafoneZiggo in the Netherlands, Telenet in Belgium and Sunrise in Switzerland. The company traces its roots to the 2005 merger of UnitedGlobalCom and Liberty Media International. In addition to its telecommunications businesses, Liberty Global invests in communications infrastructure and technology companies.
Receive News & Ratings for iHeartMedia Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for iHeartMedia and related companies with MarketBeat.com's FREE daily email newsletter.
