WideOpenWest (WOW) versus Liberty Latin America Ltd Class A (LILA) Financial Analysis

WideOpenWest (NYSE: WOW) and Liberty Latin America Ltd Class A (NASDAQ:LILA) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

WideOpenWest has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Liberty Latin America Ltd Class A has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Profitability

This table compares WideOpenWest and Liberty Latin America Ltd Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WideOpenWest -8.17% -5.95% 0.76%
Liberty Latin America Ltd Class A N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations for WideOpenWest and Liberty Latin America Ltd Class A, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WideOpenWest 0 3 2 0 2.40
Liberty Latin America Ltd Class A 1 4 1 0 2.00

WideOpenWest presently has a consensus target price of $15.50, suggesting a potential upside of 22.53%. Liberty Latin America Ltd Class A has a consensus target price of $24.75, suggesting a potential upside of 33.50%. Given Liberty Latin America Ltd Class A’s higher possible upside, analysts clearly believe Liberty Latin America Ltd Class A is more favorable than WideOpenWest.

Insider and Institutional Ownership

59.0% of WideOpenWest shares are held by institutional investors. Comparatively, 21.5% of Liberty Latin America Ltd Class A shares are held by institutional investors. 2.4% of WideOpenWest shares are held by insiders. Comparatively, 8.4% of Liberty Latin America Ltd Class A shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares WideOpenWest and Liberty Latin America Ltd Class A’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WideOpenWest $1.19 billion 0.95 $159.50 million $0.69 18.33
Liberty Latin America Ltd Class A $3.59 billion 0.88 -$70.21 million ($0.41) -45.22

WideOpenWest has higher earnings, but lower revenue than Liberty Latin America Ltd Class A. Liberty Latin America Ltd Class A is trading at a lower price-to-earnings ratio than WideOpenWest, indicating that it is currently the more affordable of the two stocks.

Summary

WideOpenWest beats Liberty Latin America Ltd Class A on 9 of the 14 factors compared between the two stocks.

About WideOpenWest

WideOpenWest, Inc. operates as a cable operator in the United States. It provides high-speed data, cable television, voice over IP-based telephony, and business-class services to residential and business services customers. Its video services include basic cable services that comprise local broadcast television and local community programming; digital cable services; and ultra video products, as well as provides commercial-free movies, sports, and other special event entertainment programs. The company's telephony services consist of local area calling plans, local and long-distance plans, caller ID and waiting, voicemail, and toll packages. Its business telephony and data services include enhanced telephony services, data speeds of up to 10 gigabit per second on its fiber network, and office-to-office metro Ethernet services; hosted voice products that can replace customers' legacy private branch exchange products; session initiated protocol trunking services; and colocation infrastructure, cloud computing, managed backup, and recovery services. The company offers its services through hybrid fiber coaxial cable network. It offers its services in approximately 300 communities in the states of Alabama, Florida, Georgia, Illinois, Indiana, Maryland, Michigan, Ohio, South Carolina, and Tennessee. As of December 31, 2017, its networks passed 3,109 thousand homes and businesses and served 777 thousand customers. The company was formerly known as WideOpenWest Kite, Inc. and changed its name to WideOpenWest, Inc. in March 2017. The company was founded in 2001 and is based in Englewood, Colorado. WideOpenWest, Inc. is a subsidiary of WideOpenWest Holdings, LLC.

About Liberty Latin America Ltd Class A

Liberty Latin America Ltd. provides various telecommunications services. Its services primarily include video, broadband Internet, fixed-line telephony, and mobile services. The company offers communications and entertainment 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 governmental agencies. It also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. The company provides its services in 18 countries in Latin America and the Caribbean under the brands of C&W, BTC, Flow, Móvil, VTR, and Liberty. Liberty Latin America Ltd. was incorporated in 2017 and is based in Denver, Colorado.

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