Starz Acquisition (NASDAQ: STRZA) and Liberty Media Corporation (NASDAQ:LSXMA) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Valuation & Earnings

This table compares Starz Acquisition and Liberty Media Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Starz Acquisition N/A N/A N/A $1.79 19.51
Liberty Media Corporation $5.11 billion 2.81 $1.71 billion $1.24 34.44

Liberty Media Corporation has higher revenue and earnings than Starz Acquisition. Starz Acquisition is trading at a lower price-to-earnings ratio than Liberty Media Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Starz Acquisition and Liberty Media Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starz Acquisition -68.21% -14.75% -6.41%
Liberty Media Corporation N/A N/A N/A

Institutional and Insider Ownership

80.2% of Starz Acquisition shares are owned by institutional investors. Comparatively, 24.3% of Liberty Media Corporation shares are owned by institutional investors. 8.5% of Starz Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Starz Acquisition and Liberty Media Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starz Acquisition 0 1 1 0 2.50
Liberty Media Corporation 0 3 4 0 2.57

Starz Acquisition currently has a consensus price target of $31.50, suggesting a potential downside of 9.82%. Liberty Media Corporation has a consensus price target of $46.80, suggesting a potential upside of 9.60%. Given Liberty Media Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Liberty Media Corporation is more favorable than Starz Acquisition.

Risk and Volatility

Starz Acquisition has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500.

Summary

Liberty Media Corporation beats Starz Acquisition on 8 of the 11 factors compared between the two stocks.

Starz Acquisition Company Profile

Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.

Liberty Media Corporation Company Profile

Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company’s principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company’s segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems.

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