Head-To-Head Analysis: Liberty Global (LBTYK) and Cable One (CABO)

Liberty Global (NASDAQ:LBTYK) and Cable One (NYSE:CABO) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares Liberty Global and Cable One’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Global $15.05 billion 1.16 -$2.78 billion N/A N/A
Cable One $960.03 million 5.17 $234.02 million $21.61 40.27

Cable One has lower revenue, but higher earnings than Liberty Global.

Dividends

Cable One pays an annual dividend of $8.00 per share and has a dividend yield of 0.9%. Liberty Global does not pay a dividend. Cable One pays out 37.0% of its earnings in the form of a dividend. Cable One has increased its dividend for 2 consecutive years.

Profitability

This table compares Liberty Global and Cable One’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Global -2.06% -36.93% -3.54%
Cable One 25.08% 22.03% 6.99%

Institutional & Insider Ownership

59.2% of Liberty Global shares are owned by institutional investors. Comparatively, 78.5% of Cable One shares are owned by institutional investors. 1.1% of Cable One shares are owned by 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.

Volatility & Risk

Liberty Global has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Cable One has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Liberty Global and Cable One, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Global 0 0 0 0 N/A
Cable One 1 5 1 0 2.00

Cable One has a consensus price target of $800.50, indicating a potential downside of 8.02%. Given Cable One’s higher probable upside, analysts clearly believe Cable One is more favorable than Liberty Global.

Summary

Cable One beats Liberty Global on 11 of the 14 factors compared between the two stocks.

About Liberty Global

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses in Europe. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, and set-top boxes. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. Additionally, it offers community Wi-Fi via routers in home, which provides access to the Internet; public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. In addition, the company provides circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

About Cable One

Cable One, Inc. owns and operates cable systems that provide data, video, and voice services in the United States. The company offers data services, including home.cableone.net, an Internet portal that provides various email addresses; and WiFi ONE, a Wi-Fi solution to enhance Wi-Fi signal throughout the home. It also provides video services, such as basic video services comprising local networks; local community programming that include governmental and public access; and other channels, which comprise weather, shopping, and religious channels, as well as digital video services, including national and regional cable networks, music channels, and an interactive electronic programming guide with parental controls. In addition, the company offers premium channels; and advanced video services, such as whole-home DVRs and high-definition set-top boxes, as well as TV Everywhere product, which enables its video customers to stream various channels and shows to mobile devices and computers. Further, it provides voice and international calling by the minute services; and a suite of digital advertising products comprising Website construction, targeted display, and short- and long-form video production. As of March 1, 2018, the company served approximately 800,000 residential and business customers in 21 Western, Midwestern, and Southern states. Cable One, Inc. was founded in 1986 and is headquartered in Phoenix, Arizona.

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