Head-To-Head Contrast: Virgin Media (VMED) vs. TiVo (TIVO)

Virgin Media (NASDAQ: VMED) and TiVo (NASDAQ:TIVO) are both cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Insider and Institutional Ownership

90.0% of TiVo shares are owned by institutional investors. 3.6% of TiVo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Virgin Media and TiVo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virgin Media N/A N/A N/A
TiVo -5.39% 4.72% 2.73%

Dividends

TiVo pays an annual dividend of $0.72 per share and has a dividend yield of 5.4%. Virgin Media does not pay a dividend. TiVo pays out -184.6% of its earnings in the form of a dividend.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virgin Media N/A N/A N/A $15.59 N/A
TiVo $649.09 million 2.50 $32.66 million ($0.39) -34.10

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Virgin Media and TiVo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virgin Media 0 0 0 0 N/A
TiVo 0 0 5 0 3.00

TiVo has a consensus price target of $23.20, suggesting a potential upside of 74.44%.

Summary

TiVo beats Virgin Media on 8 of the 10 factors compared between the two stocks.

About Virgin Media

Virgin Media Inc. (Virgin Media)is engaged in entertainment and communications business. The Company has two segments: Consumer and Business. The Company is a provider of broadband Internet, television, mobile telephony and fixed line telephony services that offer a range of entertainment and communications services to residential and commercial customers throughout the United Kingdom. It is a provider of residential broadband Internet, pay television and fixed line telephony services by number of customers. As of December 31, 2011, the Company provided services to approximately 4.8 million residential cable customers on its network. The Company is also a mobile virtual network operators by number of customers, providing mobile telephone service to 1.5 million prepay mobile customers and approximately 1.5 million contract mobile customers over third party networks. In June 2013, Liberty Global Inc announced that it has completed the acquisition of Virgin Media Inc (Virgin Media).

About TiVo

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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