Liberty Broadband Corp Series A (NASDAQ: DISCA) and DISCOVERY COMMUNICATIONS INC. Common Stock (NASDAQ:DISCA) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Valuation & Earnings

This table compares Liberty Broadband Corp Series A and DISCOVERY COMMUNICATIONS INC. Common Stock’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Broadband Corp Series A $13.09 million 1,103.34 $2.03 billion $11.10 7.17
DISCOVERY COMMUNICATIONS INC. Common Stock $6.87 billion 2.12 -$337.00 million $2.24 12.48

Liberty Broadband Corp Series A has higher earnings, but lower revenue than DISCOVERY COMMUNICATIONS INC. Common Stock. Liberty Broadband Corp Series A is trading at a lower price-to-earnings ratio than DISCOVERY COMMUNICATIONS INC. Common Stock, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liberty Broadband Corp Series A and DISCOVERY COMMUNICATIONS INC. Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Broadband Corp Series A 9,285.42% 20.47% 18.04%
DISCOVERY COMMUNICATIONS INC. Common Stock -8.28% 17.68% 4.59%

Volatility & Risk

Liberty Broadband Corp Series A has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, DISCOVERY COMMUNICATIONS INC. Common Stock has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Insider & Institutional Ownership

12.4% of Liberty Broadband Corp Series A shares are owned by institutional investors. Comparatively, 37.3% of DISCOVERY COMMUNICATIONS INC. Common Stock shares are owned by institutional investors. 5.7% of Liberty Broadband Corp Series A shares are owned by company insiders. Comparatively, 6.7% of DISCOVERY COMMUNICATIONS INC. Common Stock shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Liberty Broadband Corp Series A and DISCOVERY COMMUNICATIONS INC. Common Stock, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Broadband Corp Series A 0 0 4 0 3.00
DISCOVERY COMMUNICATIONS INC. Common Stock 1 9 12 0 2.50

Liberty Broadband Corp Series A presently has a consensus target price of $103.75, suggesting a potential upside of 30.27%. DISCOVERY COMMUNICATIONS INC. Common Stock has a consensus target price of $27.21, suggesting a potential downside of 2.65%. Given Liberty Broadband Corp Series A’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Liberty Broadband Corp Series A is more favorable than DISCOVERY COMMUNICATIONS INC. Common Stock.

Summary

Liberty Broadband Corp Series A beats DISCOVERY COMMUNICATIONS INC. Common Stock on 8 of the 14 factors compared between the two stocks.

Liberty Broadband Corp Series A Company Profile

Liberty Broadband Corporation, a cable operator, provides video, Internet, and voice services to residential and commercial customers in the United States. It operates through Skyhook and Charter segments. The Skyhook segment offers Precision Location Solution, a location determination service for mobile device makers, wireless carriers, and asset tracking platforms to understanding the precise geographic location and movement of mobile devices; enhancing the location determination capabilities of a hybrid location system. It also provides Geospatial Insights, a location intelligence and data insights service for enterprises, research and consulting firms, financial institutions, and advertisers to understand, measure, and optimize the performance of businesses; benchmark performance against competitors; enhance customer experience; advertise to, and target existing and prospective customers; and measure the efficacy of advertising campaigns in driving real-world actions. The Charter segment offers subscription-based video services comprising video on demand, high definition television, and digital video recorder service; and local and long distance calling, voicemail, call waiting, caller ID, call forwarding, and other voice services, as well as international calling services. It also provides Internet services, which comprises an in-home Wi-Fi product that provides customers with high performance wireless routers; out-of-home Wi-Fi service for Internet customers at designated hot spots; and a security suite that offers protection against computer viruses and spyware. In addition, this segment offers Internet access, data networking, video entertainment, and business telephone services; fiber connectivity to cellular towers and office buildings; and advertising services on cable television networks and digital outlets, as well as regional sports and news networks distribution, and security and home management services. The company is based in Englewood, Colorado.

DISCOVERY COMMUNICATIONS INC. Common Stock Company Profile

Discovery, Inc. operates as a media company worldwide. The company operates through U.S. Networks, International Networks, and Education and Other segments. It owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, Velocity, Discovery Family Channel, Destination America, American Heroes Channel, Discovery Life, The Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks. The company's content spans genres, including survival, exploration, sports, lifestyle, general entertainment, heroes, adventure, crime and investigation, health, and kids. It also develops and sells curriculum-based education products and services, such as an online suite of curriculum-based video on demand (VOD) tools, professional development services, and digital textbooks, as well as student assessments; and publishes hard copy curriculum-based content for K-12 schools. In addition, the company operates production studios that develop content; and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, Websites, digital distribution arrangements, and content licensing agreements, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, VOD, and broadband channels. As of December 31, 2017, the company operated approximately 400 distribution feeds in 40 languages internationally. Discovery, Inc. was founded in 1985 and is headquartered in Silver Spring, Maryland.

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