Financial Analysis: Liberty Global (LBTYA) and Altice USA (ATUS)

Altice USA (NYSE: ATUS) and Liberty Global (NASDAQ:LBTYA) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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This table compares Altice USA and Liberty Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altice USA N/A N/A N/A
Liberty Global -15.83% -21.22% -3.59%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Altice USA and Liberty Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altice USA 0 4 14 0 2.78
Liberty Global 1 1 11 0 2.77

Altice USA currently has a consensus price target of $30.08, indicating a potential upside of 62.61%. Liberty Global has a consensus price target of $43.15, indicating a potential upside of 37.60%. Given Altice USA’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Altice USA is more favorable than Liberty Global.

Institutional and Insider Ownership

16.1% of Altice USA shares are owned by institutional investors. Comparatively, 23.5% of Liberty Global shares are owned by institutional investors. 3.9% of Liberty Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Altice USA and Liberty Global’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altice USA $9.33 billion 1.46 $1.52 billion $0.02 925.00
Liberty Global $15.05 billion 1.69 -$2.78 billion ($2.29) -13.69

Altice USA has higher earnings, but lower revenue than Liberty Global. Liberty Global is trading at a lower price-to-earnings ratio than Altice USA, indicating that it is currently the more affordable of the two stocks.

Summary

Altice USA beats Liberty Global on 9 of the 13 factors compared between the two stocks.

Altice USA Company Profile

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States. The company operates in two segments, Cablevision and Cequel. It delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content, and advertising services to approximately 4.9 million residential and business customers. The company also offers wireless routers and Internet security software; and pay television services, which include delivery of broadcast stations and cable networks, and advanced digital pay television services, such as video-on-demand, high-definition channels, digital video recorder, and pay-per-view. In addition, it provides Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony, managed Wi-Fi, managed desktop and server backup services; managed collaboration services, including audio and Web conferencing; managed services, including business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; data-driven television, digital, and other multi-platform advertising services; and data-driven and audience-based advertising solutions. Further, the company operates local news channels, as well as traffic and weather channels; News12.com, a destination for local news on the Web; and News 12 To Go, a mobile app for phones and tablets. Altice USA, Inc. is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Altice N.V.

Liberty Global Company Profile

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses in Europe. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, and set-top boxes. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. Additionally, it offers community Wi-Fi via routers in home, which provides access to the Internet; public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. In addition, the company provides circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

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