Financial Analysis: Starz Acquisition (LCAPA) versus Global Eagle Entertainment (ENT)
Starz Acquisition (NASDAQ: LCAPA) and Global Eagle Entertainment (NASDAQ:ENT) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Institutional & Insider Ownership
93.0% of Global Eagle Entertainment shares are held by institutional investors. 3.9% of Global Eagle Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Starz Acquisition and Global Eagle Entertainment’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Global Eagle Entertainment||$530.01 million||0.53||-$6.37 million||($1.38)||-2.37|
Starz Acquisition has higher revenue, but lower earnings than Global Eagle Entertainment.
This is a summary of recent recommendations for Starz Acquisition and Global Eagle Entertainment, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Eagle Entertainment||0||4||1||0||2.20|
Global Eagle Entertainment has a consensus price target of $10.50, suggesting a potential upside of 221.59%. Given Global Eagle Entertainment’s higher probable upside, analysts plainly believe Global Eagle Entertainment is more favorable than Starz Acquisition.
This table compares Starz Acquisition and Global Eagle Entertainment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Eagle Entertainment||N/A||N/A||N/A|
Global Eagle Entertainment beats Starz Acquisition on 8 of the 8 factors compared between the two stocks.
About Starz Acquisition
Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.
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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