Gray Television (NYSE: GTN) and Liberty Media Corporation (NASDAQ:LSXMA) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gray Television $872.25 million 1.31 $332.14 million $1.60 9.94
Liberty Media Corporation $5.22 billion 2.84 $1.77 billion $1.36 32.42

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

Profitability

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

Net Margins Return on Equity Return on Assets
Gray Television 13.38% 17.32% 3.12%
Liberty Media Corporation N/A N/A N/A

Analyst Ratings

This is a summary of current ratings and target prices for Gray Television and Liberty Media Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gray Television 0 0 4 0 3.00
Liberty Media Corporation 0 3 5 0 2.63

Gray Television presently has a consensus price target of $18.25, indicating a potential upside of 14.78%. Liberty Media Corporation has a consensus price target of $48.50, indicating a potential upside of 10.00%. Given Gray Television’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Gray Television is more favorable than Liberty Media Corporation.

Insider & Institutional Ownership

81.4% of Gray Television shares are held by institutional investors. Comparatively, 24.7% of Liberty Media Corporation shares are held by institutional investors. 12.0% of Gray Television shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Gray Television has a beta of 3.25, suggesting that its stock price is 225% more volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500.

Summary

Gray Television beats Liberty Media Corporation on 9 of the 14 factors compared between the two stocks.

About Gray Television

Gray Television, Inc. is a television broadcast company. The Company owns and operates television stations and digital assets in various markets across the United States. As of February 21, 2017, the Company owned and/or operated television stations in 54 television markets broadcasting over 200 separate programming streams, including 37 affiliates of the CBS Network (CBS), 29 affiliates of the NBC Network (NBC), 20 affiliates of the ABC Network (ABC) and 15 affiliates of the FOX Network (FOX). In addition to a primary broadcast channel, each of its stations can also broadcast additional secondary digital channels within a market by utilizing the same bandwidth, but with different programming from the primary channel. The Company also broadcasts local news/weather channels in certain of its existing markets. Along with affiliations with ABC, CBS and FOX, the Company’s secondary channels are affiliated with various smaller networks and program services.

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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