Liberty Media Corporation (NASDAQ: BATRK) and Global Eagle Entertainment (NASDAQ:ENT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitabiliy, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Liberty Media Corporation and Global Eagle Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Media Corporation N/A N/A N/A
Global Eagle Entertainment N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings for Liberty Media Corporation and Global Eagle Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Media Corporation 1 0 0 0 1.00
Global Eagle Entertainment 0 4 1 0 2.20

Liberty Media Corporation currently has a consensus target price of $22.00, indicating a potential downside of 5.38%. Global Eagle Entertainment has a consensus target price of $10.75, indicating a potential upside of 208.02%. Given Global Eagle Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Global Eagle Entertainment is more favorable than Liberty Media Corporation.

Institutional and Insider Ownership

71.5% of Liberty Media Corporation shares are owned by institutional investors. Comparatively, 94.4% of Global Eagle Entertainment shares are owned by institutional investors. 3.9% of Global Eagle Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Liberty Media Corporation has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, Global Eagle Entertainment has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Earnings and Valuation

This table compares Liberty Media Corporation and Global Eagle Entertainment’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Liberty Media Corporation $263.00 million 4.37 -$22.00 million ($2.16) -10.76
Global Eagle Entertainment $486.23 million 0.61 $31.07 million ($0.34) -10.26

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

Summary

Global Eagle Entertainment beats Liberty Media Corporation on 8 of the 10 factors compared between the two stocks.

About Liberty Media Corporation

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 Global Eagle Entertainment

Global Eagle Entertainment Inc. is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. Its Connectivity segment provides airline partners and their passengers with Wireless Fidelity (Wi-Fi) connectivity over Ku-band satellite transmissions, and to a lesser extent operations solutions to airline customers. Its Content segment selects, manages and distributes wholly owned and licensed media content, video and music programming, applications, digital advertising solutions and games to over 150 airlines across the world, as well as to maritime and other away-from-home non-theatrical markets. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wi-Fi, movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services and e-commerce solutions.

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