Critical Comparison: Sinclair Broadcast Group (SBGI) vs. Liberty Media (LSXMA)

Sinclair Broadcast Group (NASDAQ: SBGI) and Liberty Media (NASDAQ:LSXMA) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Risk and Volatility

Sinclair Broadcast Group has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Liberty Media has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.

Profitability

This table compares Sinclair Broadcast Group and Liberty Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sinclair Broadcast Group 9.06% 23.27% 3.58%
Liberty Media N/A N/A N/A

Valuation & Earnings

This table compares Sinclair Broadcast Group and Liberty Media’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sinclair Broadcast Group $2.74 billion 1.35 $245.30 million $2.66 13.68
Liberty Media $5.01 billion 2.84 $544.34 million $1.62 26.12

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

Institutional and Insider Ownership

84.8% of Sinclair Broadcast Group shares are held by institutional investors. Comparatively, 25.1% of Liberty Media shares are held by institutional investors. 28.2% of Sinclair Broadcast Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. Liberty Media does not pay a dividend. Sinclair Broadcast Group pays out 27.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sinclair Broadcast Group and Liberty Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sinclair Broadcast Group 0 0 9 0 3.00
Liberty Media 0 3 4 0 2.57

Sinclair Broadcast Group presently has a consensus price target of $47.00, suggesting a potential upside of 29.12%. Liberty Media has a consensus price target of $50.80, suggesting a potential upside of 20.07%. Given Sinclair Broadcast Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sinclair Broadcast Group is more favorable than Liberty Media.

Summary

Sinclair Broadcast Group beats Liberty Media on 10 of the 16 factors compared between the two stocks.

Sinclair Broadcast Group Company Profile

Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

Liberty Media Company Profile

Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company’s principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company’s segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems.

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