Head-To-Head Review: Liberty Broadband (NASDAQ:LBRDA) vs. Prosiebensat.1 Media (OTCMKTS:PBSFY)

Liberty Broadband (NASDAQ:LBRDA) and Prosiebensat.1 Media (OTCMKTS:PBSFY) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Liberty Broadband and Prosiebensat.1 Media, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Broadband	0	2	1	0	2.33
Prosiebensat.1 Media	0	1	0	1	3.00

Liberty Broadband currently has a consensus price target of $100.67, indicating a potential upside of 68.03%. Given Liberty Broadband’s higher probable upside, equities research analysts plainly believe Liberty Broadband is more favorable than Prosiebensat.1 Media.

Volatility and Risk

Liberty Broadband has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Prosiebensat.1 Media has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares Liberty Broadband and Prosiebensat.1 Media”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Broadband	$1.02 billion	8.45	$869.00 million	$6.26	9.57
Prosiebensat.1 Media	$4.24 billion	0.48	$55.19 million	($0.10)	-22.55

Liberty Broadband has higher earnings, but lower revenue than Prosiebensat.1 Media. Prosiebensat.1 Media is trading at a lower price-to-earnings ratio than Liberty Broadband, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liberty Broadband and Prosiebensat.1 Media’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Broadband	86.40%	9.24%	5.43%
Prosiebensat.1 Media	-2.27%	13.40%	3.55%

Institutional and Insider Ownership

10.3% of Liberty Broadband shares are owned by institutional investors. 11.6% of Liberty Broadband 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

Liberty Broadband beats Prosiebensat.1 Media on 10 of the 15 factors compared between the two stocks.

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.

About Prosiebensat.1 Media

ProSiebenSat.1 Media SE operates as a media company in Germany, Austria, Switzerland, the United States, and internationally. It operates through three segments: Entertainment, Dating & Video, and Commerce & Ventures. The Entertainment segment operates free TV stations and digital platforms, such as SAT.1, ProSieben, Kabel Eins, sixx, SAT.1 Gold, ProSieben MAXX, and Kabel Eins Doku, as well as PULS4, PULS24, ATV I, ATV II, and PLUS 8. This segment is involved in operating commercial websites; production and distribution programming portfolio, including entertainment, reality, and factual formats, as well as TV series, TV films, and digital content; and operates Studio71 which creates and sells digital offerings for influencers. Its Dating & Video segment engages in online matchmaking services for online dating and entertainment under the Parship, ElitePartner, eHarmony, LOVOO help singles brand names. This segment provides video-based social entertainment applications, such as MeetMe, Skout, Tagged, and GROWLr content for users. The Commerce & Ventures segment engages in the consumer advice, experiences, and beauty and lifestyle businesses; and offers individual tailored support services for development of companies. This segment is involved in operating Marktguru and wetter.com. ProSiebenSat.1 Media SE was founded in 1984 and is headquartered in Unterföhring, Germany.