Warner Bros. Discovery (NASDAQ:WBD – Get Rating) and Liberty Broadband (NASDAQ:LBRDA – Get Rating) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Insider and Institutional Ownership
35.5% of Warner Bros. Discovery shares are owned by institutional investors. Comparatively, 11.7% of Liberty Broadband shares are owned by institutional investors. 6.1% of Warner Bros. Discovery shares are owned by company insiders. Comparatively, 7.6% of Liberty Broadband shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Warner Bros. Discovery and Liberty Broadband’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Warner Bros. Discovery||$12.19 billion||2.79||$1.01 billion||$2.02||6.94|
|Liberty Broadband||$988.00 million||16.95||$732.00 million||$5.47||18.81|
Warner Bros. Discovery has higher revenue and earnings than Liberty Broadband. Warner Bros. Discovery is trading at a lower price-to-earnings ratio than Liberty Broadband, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Warner Bros. Discovery and Liberty Broadband, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Warner Bros. Discovery||1||3||5||0||2.44|
Warner Bros. Discovery currently has a consensus target price of $28.67, indicating a potential upside of 104.47%. Liberty Broadband has a consensus target price of $190.00, indicating a potential upside of 84.66%. Given Warner Bros. Discovery’s higher possible upside, analysts clearly believe Warner Bros. Discovery is more favorable than Liberty Broadband.
This table compares Warner Bros. Discovery and Liberty Broadband’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Warner Bros. Discovery||10.53%||10.38%||3.96%|
Risk and Volatility
Warner Bros. Discovery has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Liberty Broadband has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
About Warner Bros. Discovery (Get Rating)
Warner Bros. Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages worldwide. It also produces, develops, and distributes feature films, television, gaming, and other content in various physical and digital formats through basic networks, direct-to-consumer or theatrical, TV content, and games licensing. The company owns and operates various television networks under the Discovery Channel, HGTV, Food Network, TLC, Animal Planet, Investigation Discovery, Travel Channel, Science, MotorTrend, Discovery en Español, Discovery Familia, Eurosport, TVN, Discovery Kids, Discovery Family, American Heroes Channel, Destination America, Discovery Life, Magnolia Network, Cooking Channel, ID, the Oprah Winfrey Network, Eurosport, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, natural history, exploration, sports, general entertainment, home, food, travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, content licensing agreements, and direct-to-consumer subscriptions, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. Warner Bros. Discovery, Inc.is headquartered in New York, New York.
About Liberty Broadband (Get Rating)
Liberty Broadband Corporation engages in the communications businesses. It operates through GCI Holdings and Charter segments. The GCI Holdings segment provides a range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska under the GCI brand. The Charter segment offers subscription-based video services comprising video on demand, high-definition television, and digital video recorder service; local and long-distance calling, voicemail, call waiting, caller ID, call forwarding, and other voice services, as well as international calling services; and Spectrum TV. It also provides internet services, including an in-home Wi-Fi product that provides customers with high-performance wireless routers and managed Wi-Fi services; advanced community Wi-Fi; mobile internet; and a security suite that offers protection against computer viruses and spyware. In addition, this segment offers internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment, and business telephone services; advertising services on cable television networks and digital outlets; and operates regional sports and news networks. Liberty Broadband Corporation was incorporated in 2014 and is based in Englewood, Colorado.
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