Financial Analysis: Liberty Global PLC Class C (LBTYK) & Shaw Communications Inc Class B (SJR)

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Liberty Global PLC Class C (NYSE: SJR) and Shaw Communications Inc Class B (NYSE:SJR) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Liberty Global PLC Class C and Shaw Communications Inc Class B, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Global PLC Class C 0 0 0 0 N/A
Shaw Communications Inc Class B 0 2 5 0 2.71

Shaw Communications Inc Class B has a consensus target price of $27.50, suggesting a potential upside of 32.08%. Given Shaw Communications Inc Class B’s higher possible upside, analysts plainly believe Shaw Communications Inc Class B is more favorable than Liberty Global PLC Class C.

Risk and Volatility

Liberty Global PLC Class C has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Shaw Communications Inc Class B has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Liberty Global PLC Class C and Shaw Communications Inc Class B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Global PLC Class C -11.46% -27.88% -3.31%
Shaw Communications Inc Class B 6.71% 12.18% 5.15%

Valuation and Earnings

This table compares Liberty Global PLC Class C and Shaw Communications Inc Class B’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 PLC Class C $15.05 billion 1.32 -$2.78 billion N/A N/A
Shaw Communications Inc Class B $3.70 billion 2.72 $644.63 million $0.84 24.79

Shaw Communications Inc Class B has lower revenue, but higher earnings than Liberty Global PLC Class C.

Institutional and Insider Ownership

56.8% of Liberty Global PLC Class C shares are held by institutional investors. Comparatively, 54.4% of Shaw Communications Inc Class B shares are held by institutional investors. 1.0% of Shaw Communications Inc Class B shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Shaw Communications Inc Class B pays an annual dividend of $0.91 per share and has a dividend yield of 4.4%. Liberty Global PLC Class C does not pay a dividend. Shaw Communications Inc Class B pays out 108.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Shaw Communications Inc Class B beats Liberty Global PLC Class C on 9 of the 13 factors compared between the two stocks.

Liberty Global PLC Class C Company Profile

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses in Europe. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, and set-top boxes. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. Additionally, it offers community Wi-Fi via routers in home, which provides access to the Internet; public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. In addition, the company provides circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers 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. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

Shaw Communications Inc Class B Company Profile

Shaw Communications Inc. operates as a diversified communications company in North America. The company operates through Consumer, Business Network Services, and Wireless segments. The Consumer segment provides cable telecommunications services, including video, Internet, Wi-Fi, phone, and satellite video services to residential customers. The Business Network Services segment provides data networking, video, voice, and Internet services through a national fiber-optic backbone network, as well as satellite video services to businesses and public-sector entities. The Wireless segment provides wireless voice and data communications services for customers. The company was formerly known as Shaw Cable systems Ltd. and changed its name to Shaw Communications Inc. in May 1993. Shaw Communications Inc. was founded in 1966 and is based in Calgary, Canada.

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