Analyzing Liberty Latin America (NASDAQ:LILAK) and Warner Bros. Discovery (NASDAQ:WBD)

Liberty Latin America (NASDAQ:LILAKGet Rating) and Warner Bros. Discovery (NASDAQ:WBDGet Rating) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Liberty Latin America and Warner Bros. Discovery’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Latin America $4.80 billion 0.39 -$432.42 million ($1.91) -4.35
Warner Bros. Discovery $12.19 billion 2.96 $1.01 billion $2.02 7.36

Warner Bros. Discovery has higher revenue and earnings than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Warner Bros. Discovery, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Liberty Latin America has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Profitability

This table compares Liberty Latin America and Warner Bros. Discovery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Latin America N/A N/A N/A
Warner Bros. Discovery 10.53% 10.38% 3.96%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Liberty Latin America and Warner Bros. Discovery, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Latin America 1 0 2 0 2.33
Warner Bros. Discovery 1 2 5 0 2.50

Liberty Latin America currently has a consensus target price of $18.50, suggesting a potential upside of 122.62%. Warner Bros. Discovery has a consensus target price of $28.67, suggesting a potential upside of 92.91%. Given Liberty Latin America’s higher possible upside, equities research analysts clearly believe Liberty Latin America is more favorable than Warner Bros. Discovery.

Insider and Institutional Ownership

59.4% of Liberty Latin America shares are owned by institutional investors. Comparatively, 35.5% of Warner Bros. Discovery shares are owned by institutional investors. 6.1% of Warner Bros. Discovery shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Warner Bros. Discovery beats Liberty Latin America on 10 of the 13 factors compared between the two stocks.

About Liberty Latin America (Get Rating)

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica segments. It offers communications and entertainment services, including video, broadband internet, fixed-line telephony, and mobile services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services in approximately 20 countries in Latin America, the Caribbean, Chile, and Costa Rica under the brands of C&W, VTR, Liberty Puerto Rico, Cabletica, BTC, UTS, Flow, and Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.

About Warner Bros. Discovery (Get Rating)

Warner Bros. Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages worldwide. It also produces, develops, and distributes feature films, television, gaming, and other content in various physical and digital formats through basic networks, direct-to-consumer or theatrical, TV content, and games licensing. The company owns and operates various television networks under the Discovery Channel, HGTV, Food Network, TLC, Animal Planet, Investigation Discovery, Travel Channel, Science, MotorTrend, Discovery en Español, Discovery Familia, Eurosport, TVN, Discovery Kids, Discovery Family, American Heroes Channel, Destination America, Discovery Life, Magnolia Network, Cooking Channel, ID, the Oprah Winfrey Network, Eurosport, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, natural history, exploration, sports, general entertainment, home, food, travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, content licensing agreements, and direct-to-consumer subscriptions, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. Warner Bros. Discovery, Inc.is headquartered in New York, New York.

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