Head-To-Head Comparison: Liberty Media (LSXMA) and TiVo (TIVO)

Liberty Media (NASDAQ: LSXMA) and TiVo (NASDAQ:TIVO) are both mid-cap cyclical consumer goods & services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

TiVo pays an annual dividend of $0.72 per share and has a dividend yield of 3.9%. Liberty Media does not pay a dividend. TiVo pays out -184.6% of its earnings in the form of a dividend.

Profitability

This table compares Liberty Media and TiVo’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
TiVo -5.39% 4.72% 2.73%

Insider and Institutional Ownership

24.6% of Liberty Media shares are owned by institutional investors. Comparatively, 88.8% of TiVo shares are owned by institutional investors. 3.6% of TiVo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Liberty Media and TiVo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Liberty Media $5.01 billion 2.73 $463.69 million $1.38 29.53
TiVo $649.09 million 3.47 $32.66 million ($0.39) -47.31

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Liberty Media and TiVo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Media 0 3 4 0 2.57
TiVo 0 0 5 0 3.00

Liberty Media presently has a consensus price target of $50.80, suggesting a potential upside of 24.66%. TiVo has a consensus price target of $27.60, suggesting a potential upside of 49.59%. Given TiVo’s stronger consensus rating and higher possible upside, analysts clearly believe TiVo is more favorable than Liberty Media.

Summary

TiVo beats Liberty Media on 10 of the 15 factors compared between the two stocks.

About Liberty Media

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.

About TiVo

TiVo Corporation is engaged in offering media and entertainment products. The Company operates through two segments: Intellectual Property Licensing and Product. The Company’s Product segment includes a suite of component technologies that can be integrated into media service provider internally developed platforms or deployed as an integrated TiVo solution. The Company provides a range of intellectual property, cloud-based services and set-top box solutions that enable people to use online video, television, movies and music entertainment, including content discovery through device embedded and cloud-based interactive program guides (IPGs), digital video recorders (DVRs), natural language voice and text search, cloud-based recommendations services and its entertainment metadata (descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, sports, music, books, games or other entertainment content).

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