Liberty Media Corporation (NASDAQ: BATRK) and TiVo Corporation (NASDAQ:TIVO) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Liberty Media Corporation and TiVo Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Media Corporation 1 0 0 0 1.00
TiVo Corporation 0 0 5 0 3.00

Liberty Media Corporation presently has a consensus target price of $25.00, suggesting a potential upside of 1.50%. TiVo Corporation has a consensus target price of $27.60, suggesting a potential upside of 47.20%. Given TiVo Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe TiVo Corporation is more favorable than Liberty Media Corporation.

Profitability

This table compares Liberty Media Corporation and TiVo Corporation’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
TiVo Corporation 2.47% 10.59% 5.99%

Dividends

TiVo Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 3.8%. Liberty Media Corporation does not pay a dividend. TiVo Corporation pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Liberty Media Corporation and TiVo Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Liberty Media Corporation $308.00 million 3.96 -$11.00 million ($2.31) -10.66
TiVo Corporation $819.79 million 2.75 $259.28 million $0.30 62.50

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

Insider and Institutional Ownership

70.1% of Liberty Media Corporation shares are held by institutional investors. Comparatively, 89.0% of TiVo Corporation shares are held by institutional investors. 3.6% of TiVo Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Liberty Media Corporation has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, TiVo Corporation has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Summary

TiVo Corporation beats Liberty Media Corporation on 12 of the 15 factors compared between the two stocks.

Liberty Media Corporation Company Profile

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.

TiVo Corporation Company Profile

TiVo Corporation is engaged in offering media and entertainment products. The Company operates through two segments: Intellectual Property Licensing and Product. The Company’s Product segment includes a suite of component technologies that can be integrated into media service provider internally developed platforms or deployed as an integrated TiVo solution. The Company provides a range of intellectual property, cloud-based services and set-top box solutions that enable people to use online video, television, movies and music entertainment, including content discovery through device embedded and cloud-based interactive program guides (IPGs), digital video recorders (DVRs), natural language voice and text search, cloud-based recommendations services and its entertainment metadata (descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, sports, music, books, games or other entertainment content).

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