Liberty Broadband (LBRDA) versus Its Peers Head to Head Analysis

Liberty Broadband (NASDAQ: LBRDA) is one of 32 publicly-traded companies in the “Cable & other pay television services” industry, but how does it contrast to its competitors? We will compare Liberty Broadband to similar businesses based on the strength of its analyst recommendations, dividends, profitability, earnings, valuation, institutional ownership and risk.

Insider & Institutional Ownership

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12.7% of Liberty Broadband shares are owned by institutional investors. Comparatively, 54.2% of shares of all “Cable & other pay television services” companies are owned by institutional investors. 6.1% of Liberty Broadband shares are owned by insiders. Comparatively, 11.4% of shares of all “Cable & other pay television services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Liberty Broadband and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Broadband 0 0 3 0 3.00
Liberty Broadband Competitors 293 1474 2276 75 2.52

Liberty Broadband currently has a consensus price target of $126.00, indicating a potential upside of 52.03%. As a group, “Cable & other pay television services” companies have a potential upside of 21.34%. Given Liberty Broadband’s stronger consensus rating and higher probable upside, analysts plainly believe Liberty Broadband is more favorable than its competitors.

Profitability

This table compares Liberty Broadband and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Broadband 15,532.30% 22.65% 20.03%
Liberty Broadband Competitors 1,300.24% 29.22% 4.79%

Earnings & Valuation

This table compares Liberty Broadband and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Liberty Broadband $13.09 million $2.03 billion 13.81
Liberty Broadband Competitors $12.86 billion $1.94 billion 56.95

Liberty Broadband’s competitors have higher revenue, but lower earnings than Liberty Broadband. Liberty Broadband is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Liberty Broadband has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Liberty Broadband’s competitors have a beta of 1.22, meaning that their average stock price is 22% more volatile than the S&P 500.

Summary

Liberty Broadband beats its competitors on 7 of the 13 factors compared.

About Liberty Broadband

Liberty Broadband Corporation holds interest in Charter Communications, Inc. (Charter) and its subsidiary Skyhook Holding, Inc. (Skyhook). The Company’s segments include Skyhook, Charter, and Corporate and other. Skyhook provides a wireless fidelity (Wi-Fi)-based location platform focused on providing positioning technology and contextual location intelligence solutions. Charter is an equity method investment that provides cable services in the United States, offering a range of entertainment, information and communications solutions to residential and commercial customers. Charter offers its customers subscription-based video services, including video on demand (VOD), high definition television, and digital video recorder service, Internet services and voice services. Skyhook’s Wi-Fi location solution can be used to help carriers and emergency personnel offer E-9-1-1 services domestically. Charter offers broadband communications solutions for businesses and carrier organizations.

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