Media General (NYSE: MEG) and Liberty Media (NASDAQ:FWONA) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Institutional & Insider Ownership

90.8% of Media General shares are held by institutional investors. Comparatively, 11.0% of Liberty Media shares are held by institutional investors. 16.5% of Media General shares are held by company insiders. Comparatively, 5.3% of Liberty Media shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Media General and Liberty Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Media General 0 0 1 0 3.00
Liberty Media 0 5 4 0 2.44

Media General presently has a consensus price target of $8.00, suggesting a potential upside of Infinity. Liberty Media has a consensus price target of $39.00, suggesting a potential upside of 4.98%. Given Media General’s stronger consensus rating and higher possible upside, research analysts plainly believe Media General is more favorable than Liberty Media.

Valuation & Earnings

This table compares Media General and Liberty Media’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Media General N/A N/A N/A ($0.48) N/A
Liberty Media $5.28 billion 1.62 $680.00 million ($0.38) -97.76

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

Profitability

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

Net Margins Return on Equity Return on Assets
Media General -4.25% 6.92% 2.28%
Liberty Media N/A -0.59% -0.31%

Summary

Media General beats Liberty Media on 6 of the 10 factors compared between the two stocks.

Media General Company Profile

Media General, Inc. is a television broadcasting and digital media company. The Company provides news, information and entertainment in markets across the United States. The Company operates or services 71 network-affiliated broadcast television stations in 48 markets along with the digital media business. The Company’s network affiliations include twelve CBS stations, nine NBC stations, seven ABC stations, one FOX station, one CW station and one MyNetworkTV station. The Company offers consumers and advertisers with entertainment and information, content and distribution on every screen. Its portfolio of broadcast, digital and mobile products informs and engages 23% of United States Television (TV) households and 43% of the United States Internet audience. The Company has the diverse digital media business with a portfolio that includes LIN Digital, LIN Mobile, HYFN, Dedicated Media, Federated Media and BiteSizeTV.

Liberty Media Company Profile

Liberty Media Corporation (Liberty) owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. Through its subsidiaries and affiliates, the Company principally operates in North America. Its principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and the Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company operates through two segments: SIRIUS X, and corporate and other. SIRIUS XM transmits its 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 its approximately two satellite radio systems. SIRIUS XM has approximately 29.6 million subscribers. Its corporate and other segment includes its consolidated subsidiary, Braves Holdings.

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