Reviewing Shenandoah Telecommunications (NASDAQ:SHEN) & Liberty Sirius XM Group Series A (NASDAQ:LSXMA)

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Shenandoah Telecommunications (NASDAQ:SHEN) and Liberty Sirius XM Group Series A (NASDAQ:LSXMA) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Shenandoah Telecommunications and Liberty Sirius XM Group Series A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shenandoah Telecommunications 8.23% 11.86% 3.36%
Liberty Sirius XM Group Series A N/A N/A N/A

Institutional and Insider Ownership

49.0% of Shenandoah Telecommunications shares are held by institutional investors. Comparatively, 27.1% of Liberty Sirius XM Group Series A shares are held by institutional investors. 4.7% of Shenandoah Telecommunications 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.

Analyst Ratings

This is a breakdown of recent ratings for Shenandoah Telecommunications and Liberty Sirius XM Group Series A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shenandoah Telecommunications 0 1 2 0 2.67
Liberty Sirius XM Group Series A 0 0 5 0 3.00

Shenandoah Telecommunications currently has a consensus price target of $50.50, suggesting a potential upside of 36.63%. Liberty Sirius XM Group Series A has a consensus price target of $63.40, suggesting a potential upside of 60.63%. Given Liberty Sirius XM Group Series A’s stronger consensus rating and higher possible upside, analysts plainly believe Liberty Sirius XM Group Series A is more favorable than Shenandoah Telecommunications.

Dividends

Shenandoah Telecommunications pays an annual dividend of $0.27 per share and has a dividend yield of 0.7%. Liberty Sirius XM Group Series A does not pay a dividend. Shenandoah Telecommunications pays out 29.0% of its earnings in the form of a dividend. Shenandoah Telecommunications has raised its dividend for 6 consecutive years.

Valuation & Earnings

This table compares Shenandoah Telecommunications and Liberty Sirius XM Group Series A’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shenandoah Telecommunications $630.85 million 2.92 $46.60 million $0.93 39.74
Liberty Sirius XM Group Series A $5.77 billion 2.21 $650.14 million $2.01 19.64

Liberty Sirius XM Group Series A has higher revenue and earnings than Shenandoah Telecommunications. Liberty Sirius XM Group Series A is trading at a lower price-to-earnings ratio than Shenandoah Telecommunications, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Shenandoah Telecommunications has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Liberty Sirius XM Group Series A has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Summary

Shenandoah Telecommunications beats Liberty Sirius XM Group Series A on 9 of the 17 factors compared between the two stocks.

Shenandoah Telecommunications Company Profile

Shenandoah Telecommunications Company, through its subsidiaries, primarily provides wireless, cable, and wireline telecommunications services to customers and other telecommunications providers. The company operates in three segments: Wireless, Cable, and Wireline. The Wireless segment provides digital wireless mobile services; and wireless mobility communications network products and services. It owns 208 cell site towers built on leased land and owned land; and leases space on towers to affiliated and non-affiliated third party wireless service providers. This segment provides its services in central and western Virginia, south-central Pennsylvania, West Virginia, Maryland, North Carolina, Kentucky, Tennessee, and Ohio. The Cable segment offers video, broadband, and voice services in Virginia, West Virginia, and western Maryland; and leases fiber optic facilities. The Wireline segment provides regulated and unregulated voice services, Internet broadband, and long distance access services, as well as leases fiber optic facilities throughout portions of Virginia, West Virginia, Maryland, and Pennsylvania. Shenandoah Telecommunications Company also maintains an interstate fiber optic network; and offers unregulated communications equipment sales and services. The company provides its products and services under the Sprint and Shentel brands. Shenandoah Telecommunications Company was founded in 1902 and is headquartered in Edinburg, Virginia.

Liberty Sirius XM Group Series A Company Profile

The Liberty SiriusXM Group, through its subsidiary, Sirius XM Holdings Inc., transmits music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States and Canada. The company also provides infotainment services; and streaming services through applications for mobile and home devices, and other consumer electronic equipment, as well as online. In addition, it offers connected vehicle services; and Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings. Further, the company engages in the direct sale of satellite radios and accessories. It distributes its satellite radios through automakers, as well as through its retailers and Website; and provides satellite radio services to customers of rental car companies. As of December 31, 2018, it had approximately 34 million subscribers. The company is based in Englewood, Colorado. The Liberty SiriusXM Group is a subsidiary of Liberty Media Corporation.

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