Time Warner Cable (NYSE: TWC) and Liberty Broadband Corporation (NASDAQ:LBRDA) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Time Warner Cable and Liberty Broadband Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Time Warner Cable N/A N/A N/A N/A N/A
Liberty Broadband Corporation $30.00 million 83.40 -$10.84 million $0.17 560.00

Time Warner Cable has higher revenue, but lower earnings than Liberty Broadband Corporation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Time Warner Cable and Liberty Broadband Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Time Warner Cable 0 0 0 0 N/A
Liberty Broadband Corporation 0 0 3 0 3.00

Liberty Broadband Corporation has a consensus price target of $111.67, suggesting a potential upside of 17.30%. Given Liberty Broadband Corporation’s higher probable upside, analysts clearly believe Liberty Broadband Corporation is more favorable than Time Warner Cable.

Profitability

This table compares Time Warner Cable and Liberty Broadband Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Time Warner Cable 7.98% 21.59% 4.00%
Liberty Broadband Corporation 106.55% 0.38% 0.33%

Insider and Institutional Ownership

11.9% of Liberty Broadband Corporation shares are owned by institutional investors. 6.1% of Liberty Broadband Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Liberty Broadband Corporation beats Time Warner Cable on 6 of the 8 factors compared between the two stocks.

Time Warner Cable Company Profile

Time Warner Cable Inc. (TWC) is a provider of video, high-speed data and voice services in the United States with clustered cable systems located in approximately five geographic areas, including New York State, the Carolinas, the Midwest, Southern California and Texas. The Company operates through three segments: Residential Services, Business Services and Other Operations. The Company’s residential services segment includes security and home management services. Its business services segment includes networking and transport services, including cell tower backhaul services, and enterprise-class, cloud-enabled hosting, managed applications and services. The Company serves approximately 15.9 million residential and business services customers. The Company also sells video and online advertising inventory to various local, regional and national customers.

Liberty Broadband Corporation Company Profile

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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