Liberty Media (NASDAQ: BATRK) and Tribune Media (NYSE:TRCO) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Liberty Media and Tribune Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Media 1 0 0 0 1.00
Tribune Media 1 4 1 0 2.00

Liberty Media presently has a consensus target price of $25.00, indicating a potential upside of 10.23%. Tribune Media has a consensus target price of $43.88, indicating a potential upside of 6.57%. Given Liberty Media’s higher possible upside, research analysts plainly believe Liberty Media is more favorable than Tribune Media.

Risk and Volatility

Liberty Media has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, Tribune Media has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Liberty Media $262.00 million 3.31 -$53.92 million ($1.41) -16.08
Tribune Media $1.95 billion 1.85 $14.24 million ($1.33) -30.95

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

Profitability

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

Net Margins Return on Equity Return on Assets
Liberty Media N/A N/A N/A
Tribune Media -6.12% 4.11% 1.50%

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Liberty Media does not pay a dividend. Tribune Media pays out -75.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

71.5% of Liberty Media shares are owned by institutional investors. Comparatively, 94.2% of Tribune Media shares are owned by institutional investors. 0.6% of Tribune Media shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Tribune Media beats Liberty Media on 11 of the 15 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.

Tribune Media Company Profile

Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

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