CBS Corporation (CBS) and Liberty Media Corporation (LSXMA) Financial Analysis
CBS Corporation (NYSE: CBS) and Liberty Media Corporation (NASDAQ:LSXMA) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This is a summary of current ratings and target prices for CBS Corporation and Liberty Media Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Media Corporation||0||3||5||0||2.63|
CBS Corporation currently has a consensus price target of $74.70, indicating a potential upside of 31.63%. Liberty Media Corporation has a consensus price target of $49.17, indicating a potential upside of 16.90%. Given CBS Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe CBS Corporation is more favorable than Liberty Media Corporation.
Insider and Institutional Ownership
75.1% of CBS Corporation shares are held by institutional investors. Comparatively, 24.7% of Liberty Media Corporation shares are held by institutional investors. 1.7% of CBS Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares CBS Corporation and Liberty Media 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|
Volatility and Risk
CBS Corporation has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500.
CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Liberty Media Corporation does not pay a dividend. CBS Corporation pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBS Corporation has increased its dividend for 5 consecutive years.
Valuation and Earnings
This table compares CBS Corporation and Liberty Media Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBS Corporation||$13.20 billion||1.73||$3.05 billion||$0.34||166.91|
|Liberty Media Corporation||$5.22 billion||2.71||$1.77 billion||$1.36||30.93|
CBS Corporation has higher revenue and earnings than Liberty Media Corporation. Liberty Media Corporation is trading at a lower price-to-earnings ratio than CBS Corporation, indicating that it is currently the more affordable of the two stocks.
CBS Corporation beats Liberty Media Corporation on 12 of the 17 factors compared between the two stocks.
CBS Corporation Company Profile
CBS Corporation is a mass media company. The Company operates through four segment: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company’s digital streaming services, CBS All Access and CBSN. The Cable Networks segment comprises Showtime Networks, which operates its subscription program services, Showtime, The Movie Channel, and Flix. The Publishing segment comprises Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Gallery Books. The Local Media segment comprises CBS TV Stations, it owns 30 broadcast TV stations; and CBS Local Digital Media. Its businesses span the media and entertainment industries, including the CBS TV Network, cable networks and content production and distribution.
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.
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