The Liberty SiriusXM Group (NASDAQ:LSXMA) & Telstra (OTCMKTS:TLSYY) Critical Analysis

The Liberty SiriusXM Group (NASDAQ:LSXMAGet Rating) and Telstra (OTCMKTS:TLSYYGet Rating) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Risk and Volatility

The Liberty SiriusXM Group has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Telstra has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares The Liberty SiriusXM Group and Telstra’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Liberty SiriusXM Group $8.70 billion 1.63 $398.00 million $1.79 23.80
Telstra $16.60 billion 2.04 $1.39 billion N/A N/A

Telstra has higher revenue and earnings than The Liberty SiriusXM Group.

Insider and Institutional Ownership

28.9% of The Liberty SiriusXM Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for The Liberty SiriusXM Group and Telstra, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Liberty SiriusXM Group 0 1 4 0 2.80
Telstra 0 3 1 0 2.25

The Liberty SiriusXM Group presently has a consensus target price of $64.80, suggesting a potential upside of 52.11%. Telstra has a consensus target price of $13.82, suggesting a potential downside of 4.62%. Given The Liberty SiriusXM Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe The Liberty SiriusXM Group is more favorable than Telstra.

Profitability

This table compares The Liberty SiriusXM Group and Telstra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Liberty SiriusXM Group 6.89% 3.19% 1.34%
Telstra N/A N/A N/A

Summary

The Liberty SiriusXM Group beats Telstra on 8 of the 11 factors compared between the two stocks.

The Liberty SiriusXM Group Company Profile (Get Rating)

The Liberty SiriusXM Group, through its subsidiaries, engages in the entertainment business in the United States and Canada. It features music, sports, entertainment, comedy, talk, news, traffic, weather channels, podcast, and infotainment services through proprietary satellite radio systems, as well as streamed through applications for mobile and home devices, and other consumer electronic equipment. It also offers connected vehicle services; a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and traffic information services, which provide information as to road closings, traffic flow and incident data to consumers with compatible in-vehicle navigation systems, and real-time weather services in vehicles, boats, and planes. In addition, the company operates a music, comedy, and podcast streaming platform. Further, it offers ad-supported radio services; Pandora Plus, a radio subscription service; and Pandora Premium, an on-demand subscription service. Additionally, the company distributes satellite radios through automakers and retailers, as well as through its website. As of December 31, 2021, it served approximately 34.0 million subscribers through Sirius XM and approximately 6.4 million subscribers through Pandora. The Liberty SiriusXM Group is headquartered in Englewood, Colorado. The Liberty SiriusXM Group is a subsidiary of Liberty Media Corporation.

Telstra Company Profile (Get Rating)

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. The company offers telecommunication products, services, and solutions across mobiles, fixed and mobile broadband, media, and digital content in prepaid and post-paid services, as well as operates call centers, Telstra shops, and the Telstra dealership network. It also provides network capacity and management, unified communications, cloud, industry solutions, integrated and monitoring services to government and large enterprise customers; builds and manages digital platforms; and provides telecommunication products and services to other carriers, carriage service providers, and internet service providers. In addition, the company operates the fixed passive network infrastructure, including data centers, exchanges, poles, ducts, pits and pipes, fiber network, and mobile towers; provides wholesale customers with access to network infrastructure; provides long-term access to components of infrastructure and network services under the infrastructure services agreement and commercial contracts; and designs and constructs fiber, exchanges, and other infrastructure. The company was formerly known as Australian and Overseas Telecommunications Corporation Limited and changed its name to Telstra Corporation Limited in April 1993. Telstra Corporation Limited was founded in 1901 and is based in Melbourne, Australia.

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