Gray Media (NYSE:GTN – Get Free Report) and Liberty Global (NASDAQ:LBTYK – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Profitability
This table compares Gray Media and Liberty Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gray Media | -3.12% | -3.05% | -0.64% |
| Liberty Global | -109.64% | -47.65% | -22.51% |
Earnings & Valuation
This table compares Gray Media and Liberty Global”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gray Media | $3.10 billion | 0.15 | -$85.00 million | ($1.42) | -3.06 |
| Liberty Global | $4.88 billion | 0.82 | -$7.14 billion | ($16.00) | -0.74 |
Gray Media has higher earnings, but lower revenue than Liberty Global. Gray Media is trading at a lower price-to-earnings ratio than Liberty Global, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gray Media has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Liberty Global has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
Institutional and Insider Ownership
78.6% of Gray Media shares are held by institutional investors. Comparatively, 46.1% of Liberty Global shares are held by institutional investors. 9.0% of Gray Media shares are held by insiders. Comparatively, 9.9% of Liberty Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Gray Media and Liberty Global, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gray Media | 1 | 2 | 3 | 0 | 2.33 |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
Gray Media currently has a consensus price target of $8.13, suggesting a potential upside of 87.00%. Given Gray Media’s stronger consensus rating and higher probable upside, research analysts clearly believe Gray Media is more favorable than Liberty Global.
Summary
Gray Media beats Liberty Global on 10 of the 14 factors compared between the two stocks.
About Gray Media
Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.
About Liberty Global
Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising 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. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.
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