E.W. Scripps (NASDAQ:SSP) and Liberty Broadband (NASDAQ:LBRDA) Critical Analysis

E.W. Scripps (NASDAQ:SSP) and Liberty Broadband (NASDAQ:LBRDA) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares E.W. Scripps and Liberty Broadband’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
E.W. Scripps	-58.02%	-3.84%	-0.53%
Liberty Broadband	N/A	-9.80%	-6.32%

Valuation and Earnings

This table compares E.W. Scripps and Liberty Broadband”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E.W. Scripps	$2.15 billion	0.14	-$100.88 million	($13.94)	-0.24
Liberty Broadband	$1.02 billion	5.08	-$2.68 billion	($6.99)	-5.14

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

Analyst Ratings

This is a summary of current ratings and target prices for E.W. Scripps and Liberty Broadband, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E.W. Scripps	1	3	1	0	2.00
Liberty Broadband	1	0	0	0	1.00

E.W. Scripps presently has a consensus price target of $5.90, indicating a potential upside of 75.23%. Given E.W. Scripps’ stronger consensus rating and higher probable upside, equities analysts clearly believe E.W. Scripps is more favorable than Liberty Broadband.

Institutional and Insider Ownership

67.8% of E.W. Scripps shares are held by institutional investors. Comparatively, 10.3% of Liberty Broadband shares are held by institutional investors. 5.2% of E.W. Scripps shares are held by insiders. Comparatively, 5.7% of Liberty Broadband shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

E.W. Scripps has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Liberty Broadband has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Summary

E.W. Scripps beats Liberty Broadband on 10 of the 14 factors compared between the two stocks.

About E.W. Scripps

The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local television stations, national news, and entertainment networks in the United States. It operates through Local Media, Scripps Networks, and Other segments. The Local Media segment operates broadcast television stations, which produce news, information, sports, and entertainment content, as well as its related digital operations; runs network, syndicated, and original programming, and local sporting events; and provides core and political advertising services. The Scripps Networks segment offers national television networks through free over-the-air broadcast, cable/satellite, connected TV, and digital distribution. This segment also provides Scripp News, a national news network, which provides politics, entertainment, science, and technology news; Court TV, which showcases live trials; entertainment brands, such as Bounce, Defy TV, Grit, ION Mystery, and Laff; and ION, a national network of broadcast stations and broadcast television spectrum, which distributes programming through Federal Communications Commission-licensed television stations, as well as affiliated TV stations through over-the-air broadcast and pay TV platforms. In addition, it provides content and services through digital platforms, including the Internet, smartphones, and tablets; Nuvyyo, which offers consumers DVR product solutions to watch and record free over-the-air HDTV on connected devices; and Scripps National Spelling Bee, which shows educational programs. The company serves audiences and businesses through cable and satellite service providers. The E.W. Scripps Company was founded in 1878 and is headquartered in Cincinnati, Ohio.

About Liberty Broadband

Liberty Broadband Corporation engages in the communications businesses. The company’s GCI Holdings segment provides data, wireless, video, voice, and managed services to residential customers, businesses, governmental entities, educational, and medical institutions in Alaska under the GCI brand. Its Charter segment offers subscription-based Internet and video services, and mobile and voice services; and state-of-the-art residential and business services, which includes Spectrum Internet, TV, mobile and voice for small and medium-sized companies; Spectrum Business provides a suite of broadband products and services for businesses and government application; Spectrum Enterprise offers customized fiber-based solutions; Spectrum Reach provides advertising and production for the modern media landscape. In addition, the company provides security suite that offers computer viruses, spyware and threats from malicious actors across the internet; offers internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment, and business telephone services; advertising services on cable television networks, streaming services, and advertising platforms; and operates regional sports and news networks. Liberty Broadband Corporation was incorporated in 2014 and is based in Englewood, Colorado.