Critical Comparison: Cablevision Systems (CVC) & Liberty Broadband Corporation (LBRDA)

Cablevision Systems (NYSE: CVC) and Liberty Broadband Corporation (NASDAQ:LBRDA) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for Cablevision Systems and Liberty Broadband Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cablevision Systems 0 0 0 0 N/A
Liberty Broadband Corporation 0 0 3 0 3.00

Liberty Broadband Corporation has a consensus target price of $111.67, suggesting a potential upside of 13.09%. Given Liberty Broadband Corporation’s higher possible upside, analysts plainly believe Liberty Broadband Corporation is more favorable than Cablevision Systems.

Insider & Institutional Ownership

82.0% of Liberty Broadband Corporation shares are held by institutional investors. 6.1% of Liberty Broadband Corporation shares are held by 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.

Earnings & Valuation

This table compares Cablevision Systems and Liberty Broadband Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cablevision Systems N/A N/A N/A N/A N/A
Liberty Broadband Corporation $30.00 million 86.51 -$10.84 million N/A N/A

Cablevision Systems has higher revenue, but lower earnings than Liberty Broadband Corporation.

Profitability

This table compares Cablevision Systems and Liberty Broadband Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cablevision Systems 5.75% N/A 5.59%
Liberty Broadband Corporation 106.58% 0.38% 0.33%

Summary

Liberty Broadband Corporation beats Cablevision Systems on 7 of the 8 factors compared between the two stocks.

About Cablevision Systems

Cablevision Systems Corporation (Cablevision), through its subsidiary, CSC Holdings, LLC (CSC Holdings), operates cable operations business in the United States. The Company operates in three segments: Cable, Lightpath and Other. The Company’s Cable segment offers Cable television service, which delivers multiple channels of video programming to subscribers who pay a monthly fee for the services they receive. The Company operates Lightpath segmeny, through its subsidiary, Cablevision Lightpath, Inc. (Lightpath), which provides Ethernet-based data, Internet, voice and video transport and managed services to the business market in the New York metropolitan area. Lightpath also provides managed information technology services to businesses, including hosted voice services, managed wireless fidelity, managed desktop and server backup, and managed collaboration services. The Other segment operations consist of the operations of Newsday, News 12 Networks and Cablevision Media Sales.

About Liberty Broadband Corporation

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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