Contrasting Cable One (CABO) and Liberty Broadband Corporation (NASDAQ:LBRDA)
Cable One (NYSE: CABO) and Liberty Broadband Corporation (NASDAQ:LBRDA) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Volatility & Risk
Cable One has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Liberty Broadband Corporation has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.
Cable One pays an annual dividend of $6.00 per share and has a dividend yield of 0.8%. Liberty Broadband Corporation does not pay a dividend. Cable One pays out 32.8% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Cable One and Liberty Broadband Corporation’s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio Cable One $824.25 million 5.29 $346.62 million $18.28 41.65 Liberty Broadband Corporation $30.00 million 594.53 -$10.84 million N/A N/A
Cable One has higher revenue and earnings than Liberty Broadband Corporation.
This is a summary of current ratings and recommmendations for Cable One and Liberty Broadband Corporation, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Cable One 1 0 2 0 2.33 Liberty Broadband Corporation 0 0 4 0 3.00
Cable One presently has a consensus target price of $636.00, suggesting a potential downside of 16.47%. Liberty Broadband Corporation has a consensus target price of $96.00, suggesting a potential downside of 2.13%. Given Liberty Broadband Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Liberty Broadband Corporation is more favorable than Cable One.
Institutional & Insider Ownership
74.2% of Cable One shares are held by institutional investors. Comparatively, 81.7% of Liberty Broadband Corporation shares are held by institutional investors.
1.3% of Cable One shares are held by insiders. Comparatively, 6.1% of Liberty Broadband Corporation shares are held by insiders.
Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Cable One and Liberty Broadband Corporation’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Cable One 12.75% 23.30% 7.54% Liberty Broadband Corporation 106.58% 0.38% 0.33%
Liberty Broadband Corporation beats Cable One on 10 of the 15 factors compared between the two stocks.
Cable One Company Profile
Cable One, Inc. is a provider of data, video and voice services. The Company offers products, including Residential Video Services, Residential Data Services, Residential Voice Services, Business Services and Advertising. As of May 1, 2017, the Company provided data, video and voice services in 21 Western, Midwestern and Southern states. As of December 31, 2016, the Company provided these broadband services to residential and business customers in more than 35 cable systems covering over 400 cities and towns. The Company provides these broadband services to residential and business customers in approximately 40 cable systems covering over 400 cities and towns. The markets it serves are non-metropolitan, secondary markets, with its customers located in five states: Arizona, Idaho, Mississippi, Oklahoma and Texas. The Company offers a range of residential video services, generally ranging from a basic video service to digital service with access to hundreds of channels.
Liberty Broadband Corporation Company Profile
Liberty Broadband Corporation holds interest in Charter Communications, Inc. (Charter) and its subsidiary Skyhook Holding, Inc. (Skyhook). The Company’s segments include Skyhook, Charter, and Corporate and other.
Skyhook provides a wireless fidelity (Wi-Fi)-based location platform focused on providing positioning technology and contextual location intelligence solutions. Charter is an equity method investment that provides cable services in the United States, offering a range of entertainment, information and communications solutions to residential and commercial customers. Charter offers its customers subscription-based video services, including video on demand (VOD), high definition television, and digital video recorder service, Internet services and voice services. Skyhook’s Wi-Fi location solution can be used to help carriers and emergency personnel offer E-9-1-1 services domestically. Charter offers broadband communications solutions for businesses and carrier organizations.
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