Comparing Global Eagle Entertainment (NASDAQ:ENT) & Liberty Media Corporation (LSXMA)

Liberty Media Corporation (NASDAQ: LSXMA) and Global Eagle Entertainment (NASDAQ:ENT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Liberty Media Corporation and Global Eagle Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Media Corporation N/A N/A N/A
Global Eagle Entertainment N/A N/A N/A

Valuation & Earnings

This table compares Liberty Media Corporation and Global Eagle Entertainment’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Liberty Media Corporation $5.22 billion 0.83 $1.77 billion $1.36 31.09
Global Eagle Entertainment $486.23 million 0.56 $31.07 million ($0.34) -9.32

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

Institutional and Insider Ownership

24.7% of Liberty Media Corporation shares are held by institutional investors. Comparatively, 93.0% of Global Eagle Entertainment shares are held by institutional investors. 3.9% of Global Eagle Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Liberty Media Corporation has a beta of 2.77, indicating that its stock price is 177% more volatile than the S&P 500. Comparatively, Global Eagle Entertainment has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Liberty Media Corporation and Global Eagle Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Media Corporation 0 3 4 0 2.57
Global Eagle Entertainment 0 4 1 0 2.20

Liberty Media Corporation presently has a consensus price target of $47.40, indicating a potential upside of 12.11%. Global Eagle Entertainment has a consensus price target of $10.50, indicating a potential upside of 231.23%. Given Global Eagle Entertainment’s higher probable upside, analysts clearly believe Global Eagle Entertainment is more favorable than Liberty Media Corporation.

Summary

Liberty Media Corporation beats Global Eagle Entertainment on 7 of the 10 factors compared between the two stocks.

Liberty Media Corporation 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.

Global Eagle Entertainment Company Profile

Global Eagle Entertainment Inc. is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. Its Connectivity segment provides airline partners and their passengers with Wireless Fidelity (Wi-Fi) connectivity over Ku-band satellite transmissions, and to a lesser extent operations solutions to airline customers. Its Content segment selects, manages and distributes wholly owned and licensed media content, video and music programming, applications, digital advertising solutions and games to over 150 airlines across the world, as well as to maritime and other away-from-home non-theatrical markets. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wi-Fi, movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services and e-commerce solutions.

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