Liberty Latin America (LILA) and Altice USA (ATUS) Head to Head Review

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Liberty Latin America (NASDAQ:LILA) and Altice USA (NYSE:ATUS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Liberty Latin America and Altice USA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Latin America 1 4 1 0 2.00
Altice USA 0 2 17 1 2.95

Liberty Latin America presently has a consensus price target of $24.25, indicating a potential upside of 28.37%. Altice USA has a consensus price target of $25.86, indicating a potential upside of 41.96%. Given Altice USA’s stronger consensus rating and higher probable upside, analysts plainly believe Altice USA is more favorable than Liberty Latin America.

Profitability

This table compares Liberty Latin America and Altice USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Latin America N/A N/A N/A
Altice USA 19.65% -5.44% -0.70%

Volatility & Risk

Liberty Latin America has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Altice USA has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Institutional and Insider Ownership

22.2% of Liberty Latin America shares are owned by institutional investors. Comparatively, 37.4% of Altice USA shares are owned by institutional investors. 8.4% of Liberty Latin America shares are owned by company insiders. Comparatively, 2.0% of Altice USA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Liberty Latin America and Altice USA’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Latin America $3.59 billion 0.90 -$70.26 million ($0.41) -46.07
Altice USA $9.33 billion 1.44 $1.52 billion $0.02 911.00

Altice USA has higher revenue and earnings than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Altice USA, indicating that it is currently the more affordable of the two stocks.

Summary

Altice USA beats Liberty Latin America on 11 of the 15 factors compared between the two stocks.

Liberty Latin America Company Profile

Liberty Latin America Ltd. provides various telecommunications services. Its services primarily include video, broadband Internet, fixed-line telephony, and mobile services. The company offers communications and entertainment services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. It also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. The company provides its services in 18 countries in Latin America and the Caribbean under the brands of C&W, BTC, Flow, Móvil, VTR, and Liberty. Liberty Latin America Ltd. was incorporated in 2017 and is based in Denver, Colorado.

Altice USA Company Profile

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States. The company operates in two segments, Cablevision and Cequel. It delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content, and advertising services to approximately 4.9 million residential and business customers. The company also offers wireless routers and Internet security software; and pay television services, which include delivery of broadcast stations and cable networks, and advanced digital pay television services, such as video-on-demand, high-definition channels, digital video recorder, and pay-per-view. In addition, it provides Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony, managed Wi-Fi, managed desktop and server backup services; managed collaboration services, including audio and Web conferencing; managed services, including business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; data-driven television, digital, and other multi-platform advertising services; and data-driven and audience-based advertising solutions. Further, the company operates local news channels, as well as traffic and weather channels; News12.com, a destination for local news on the Web; and News 12 To Go, a mobile app for phones and tablets. Altice USA, Inc. is headquartered in Long Island City, New York. Altice USA, Inc. operates independently of Altice N.V. as of June 8, 2018.

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