Starz Acquisition (NASDAQ: STRZA) and Liberty Media Corporation (NASDAQ:BATRK) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Starz Acquisition has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500.

Profitability

This table compares Starz Acquisition and Liberty Media Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starz Acquisition -68.21% -14.75% -6.41%
Liberty Media Corporation N/A N/A N/A

Earnings & Valuation

This table compares Starz Acquisition and Liberty Media Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Starz Acquisition N/A N/A N/A $1.79 19.51
Liberty Media Corporation $308.00 million 4.02 -$11.00 million ($2.31) -10.84

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

Analyst Ratings

This is a summary of current recommendations and price targets for Starz Acquisition and Liberty Media Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starz Acquisition 0 0 1 0 3.00
Liberty Media Corporation 1 0 0 0 1.00

Starz Acquisition presently has a consensus target price of $36.00, suggesting a potential upside of 3.06%. Liberty Media Corporation has a consensus target price of $25.00, suggesting a potential downside of 0.16%. Given Starz Acquisition’s stronger consensus rating and higher probable upside, research analysts clearly believe Starz Acquisition is more favorable than Liberty Media Corporation.

Insider and Institutional Ownership

80.2% of Starz Acquisition shares are owned by institutional investors. Comparatively, 70.1% of Liberty Media Corporation shares are owned by institutional investors. 8.5% of Starz Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Starz Acquisition beats Liberty Media Corporation on 6 of the 11 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 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.

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