Head-To-Head Review: Liberty Media (LSXMA) versus Sinclair Broadcast Group (SBGI)
Liberty Media (NASDAQ: LSXMA) and Sinclair Broadcast Group (NASDAQ:SBGI) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. Liberty Media does not pay a dividend. Sinclair Broadcast Group pays out 27.1% of its earnings in the form of a dividend.
This table compares Liberty Media and Sinclair Broadcast Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Liberty Media||$5.01 billion||2.65||$544.34 million||$1.62||24.45|
|Sinclair Broadcast Group||$2.74 billion||1.41||$245.30 million||$2.66||14.23|
Liberty Media has higher revenue and earnings than Sinclair Broadcast Group. Sinclair Broadcast Group is trading at a lower price-to-earnings ratio than Liberty Media, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Liberty Media and Sinclair Broadcast Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sinclair Broadcast Group||0||0||10||0||3.00|
Liberty Media currently has a consensus target price of $50.80, suggesting a potential upside of 28.25%. Sinclair Broadcast Group has a consensus target price of $47.10, suggesting a potential upside of 24.44%. Given Liberty Media’s higher possible upside, equities analysts plainly believe Liberty Media is more favorable than Sinclair Broadcast Group.
Risk and Volatility
Liberty Media has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, Sinclair Broadcast Group has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.
Insider & Institutional Ownership
25.1% of Liberty Media shares are held by institutional investors. Comparatively, 84.8% of Sinclair Broadcast Group shares are held by institutional investors. 28.2% of Sinclair Broadcast Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Liberty Media and Sinclair Broadcast Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sinclair Broadcast Group||9.06%||23.27%||3.58%|
Sinclair Broadcast Group beats Liberty Media on 9 of the 16 factors compared between the two stocks.
Liberty Media 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.
Sinclair Broadcast Group Company Profile
Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.
Receive News & Ratings for Liberty Media Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Liberty Media and related companies with MarketBeat.com's FREE daily email newsletter.