Liberty Global (NASDAQ:LBTYK – Get Free Report) and Gaia (NASDAQ:GAIA – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Liberty Global and Gaia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Global | 1 | 0 | 0 | 0 | 1.00 |
| Gaia | 1 | 0 | 2 | 1 | 2.75 |
Gaia has a consensus target price of $8.00, suggesting a potential upside of 41.34%. Given Gaia’s stronger consensus rating and higher probable upside, analysts clearly believe Gaia is more favorable than Liberty Global.
Risk & Volatility
Insider & Institutional Ownership
46.1% of Liberty Global shares are owned by institutional investors. Comparatively, 40.5% of Gaia shares are owned by institutional investors. 9.9% of Liberty Global shares are owned by insiders. Comparatively, 28.6% of Gaia shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Liberty Global and Gaia”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Global | $4.34 billion | 0.91 | $1.59 billion | ($9.77) | -1.19 |
| Gaia | $90.36 million | 1.57 | -$5.23 million | ($0.19) | -29.79 |
Liberty Global has higher revenue and earnings than Gaia. Gaia is trading at a lower price-to-earnings ratio than Liberty Global, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Liberty Global and Gaia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Global | -60.38% | -22.64% | -10.77% |
| Gaia | -5.06% | -5.00% | -3.36% |
Summary
Gaia beats Liberty Global on 10 of the 15 factors compared between the two stocks.
About Liberty Global
Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.
About Gaia
Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.
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