Warner Bros. Discovery (NASDAQ: WBD – Get Rating) and Liberty Latin America (NASDAQ: LILAK – Get Rating) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Insider & Institutional Ownership:
35.5% of Warner Bros. Discovery shares are held by institutional investors. Comparatively, 59.4% of Liberty Latin America shares are held by institutional investors. 6.1% of Warner Bros. Discovery shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent ratings for Warner Bros. Discovery and Liberty Latin America, as provided by MarketBeat.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
|Warner Bros. Discovery:||1:||3:||5:||0:||2.44:|
|Liberty Latin America:||0:||1:||2:||0:||2.67:|
Warner Bros. Discovery presently has a consensus price target of $ 28.67, suggesting a potential upside of 101.59%. Liberty Latin America has a consensus price target of $ 18.50, suggesting a potential upside of 140.89%. Given Liberty Latin America’s stronger consensus rating and higher possible upside, analysts clearly believe Liberty Latin America is more favorable than Warner Bros. Discovery.
Risk and Volatility:
Warner Bros. Discovery has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
Valuation & Earnings:
This table compares Warner Bros. Discovery and Liberty Latin America’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue:||Price / Sales Ratio:||Net Income:||Earnings Per Share:||Price / Earnings Ratio:|
|Warner Bros. Discovery:||$ 12.19 billion:||2.83:||$ 1.01 billion:||$ 2.02:||7.04:|
|Liberty Latin America:||$ 4.80 billion:||0.36:||– $ 432.42 million:||($ 1.91)||-4.02:|
Warner Bros. Discovery has higher revenue and earnings than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Warner Bros. Discovery, indicating that it is currently the most affordable of the two stocks.
This table compares Warner Bros. Discovery and Liberty Latin America’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%|
|Liberty Latin America:||N / A:||N / A:||N / A:|
Warner Bros. Discovery beats Liberty Latin America on 10 of the 14 factors compared between the two stocks.
Warner Bros. Discovery Company Profile: (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 in 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.
Liberty Latin America Company Profile: (Get Rating)
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica segments. It offers communications and entertainment services, including video, broadband internet, fixed-line telephony, and mobile services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and government agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services in approximately 20 countries in Latin America, the Caribbean, Chile, and Costa Rica under the brands of C&W, VTR, Liberty Puerto Rico, Cabletica, BTC, UTS, Flow, and Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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