Cablevision Systems (NYSE: CVC) and Liberty Broadband (NASDAQ:LBRDK) are both mid-cap cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Dividends

Cablevision Systems pays an annual dividend of $0.15 per share and has a dividend yield of 0.4%. Liberty Broadband does not pay a dividend. Cablevision Systems pays out 18.3% of its earnings in the form of a dividend.

Volatility & Risk

Cablevision Systems has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Liberty Broadband has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares Cablevision Systems and Liberty Broadband’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cablevision Systems 5.75% N/A 5.59%
Liberty Broadband 142.91% 0.22% 0.19%

Valuation and Earnings

This table compares Cablevision Systems and Liberty Broadband’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cablevision Systems N/A N/A N/A $0.82 42.52
Liberty Broadband $30.59 million 506.31 $917.30 million $0.10 851.79

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

Analyst Recommendations

This is a summary of current recommendations for Cablevision Systems and Liberty Broadband, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cablevision Systems 0 0 0 0 N/A
Liberty Broadband 0 1 0 0 2.00

Liberty Broadband has a consensus price target of $95.00, suggesting a potential upside of 11.54%. Given Liberty Broadband’s higher probable upside, analysts plainly believe Liberty Broadband is more favorable than Cablevision Systems.

Institutional and Insider Ownership

54.0% of Liberty Broadband shares are owned by institutional investors. 10.8% of Liberty Broadband shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Liberty Broadband beats Cablevision Systems on 9 of the 12 factors compared between the two stocks.

Cablevision Systems Company Profile

Cablevision Systems Corporation (Cablevision), through its subsidiary, CSC Holdings, LLC (CSC Holdings), operates cable operations business in the United States. The Company operates in three segments: Cable, Lightpath and Other. The Company’s Cable segment offers Cable television service, which delivers multiple channels of video programming to subscribers who pay a monthly fee for the services they receive. The Company operates Lightpath segmeny, through its subsidiary, Cablevision Lightpath, Inc. (Lightpath), which provides Ethernet-based data, Internet, voice and video transport and managed services to the business market in the New York metropolitan area. Lightpath also provides managed information technology services to businesses, including hosted voice services, managed wireless fidelity, managed desktop and server backup, and managed collaboration services. The Other segment operations consist of the operations of Newsday, News 12 Networks and Cablevision Media Sales.

Liberty Broadband Company Profile

Liberty Broadband Corporation holds interest in Charter Communications, Inc. (Charter) and its subsidiary Skyhook Holding, Inc. (Skyhook). The Company’s segments include Skyhook, Charter, and Corporate and other. Skyhook provides a wireless fidelity (Wi-Fi)-based location platform focused on providing positioning technology and contextual location intelligence solutions. Charter is an equity method investment that provides cable services in the United States, offering a range of entertainment, information and communications solutions to residential and commercial customers. Charter offers its customers subscription-based video services, including video on demand (VOD), high definition television, and digital video recorder service, Internet services and voice services. Skyhook’s Wi-Fi location solution can be used to help carriers and emergency personnel offer E-9-1-1 services domestically. Charter offers broadband communications solutions for businesses and carrier organizations.

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