Critical Analysis: GCI Liberty, Inc. – Series C GCI Group (NASDAQ:GLIBK) vs. Array Digital Infrastructure (NYSE:AD)

GCI Liberty, Inc. – Series C GCI Group (NASDAQ:GLIBK) and Array Digital Infrastructure (NYSE:AD) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

GCI Liberty, Inc. – Series C GCI Group has a beta of -0.89, suggesting that its stock price is 189% less volatile than the S&P 500. Comparatively, Array Digital Infrastructure has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Institutional & Insider Ownership

18.0% of Array Digital Infrastructure shares are held by institutional investors. 0.1% of Array Digital Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares GCI Liberty, Inc. – Series C GCI Group and Array Digital Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCI Liberty, Inc. – Series C GCI Group	-32.53%	11.56%	5.78%
Array Digital Infrastructure	250.79%	8.52%	4.15%

Earnings & Valuation

This table compares GCI Liberty, Inc. – Series C GCI Group and Array Digital Infrastructure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCI Liberty, Inc. – Series C GCI Group	$1.05 billion	0.71	-$309.00 million	($11.25)	-1.84
Array Digital Infrastructure	$162.96 million	17.68	$48.76 million	$6.20	5.37

Array Digital Infrastructure has lower revenue, but higher earnings than GCI Liberty, Inc. – Series C GCI Group. GCI Liberty, Inc. – Series C GCI Group is trading at a lower price-to-earnings ratio than Array Digital Infrastructure, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for GCI Liberty, Inc. – Series C GCI Group and Array Digital Infrastructure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCI Liberty, Inc. – Series C GCI Group	1	1	0	0	1.50
Array Digital Infrastructure	0	3	3	0	2.50

Array Digital Infrastructure has a consensus target price of $47.40, indicating a potential upside of 42.29%. Given Array Digital Infrastructure’s stronger consensus rating and higher possible upside, analysts clearly believe Array Digital Infrastructure is more favorable than GCI Liberty, Inc. – Series C GCI Group.

Summary

Array Digital Infrastructure beats GCI Liberty, Inc. – Series C GCI Group on 11 of the 14 factors compared between the two stocks.

About GCI Liberty, Inc. – Series C GCI Group

GCI Liberty Inc. consists of its wholly owned subsidiary GCI. The company is communications provider, providing data, voice and managed services to consumer and business customers throughout Alaska. GCI Liberty Inc. is based in ENGLEWOOD, Colo.

About Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.