Tribune Media (TRCO) & Liberty Media Corporation (BATRK) Critical Review

Tribune Media (NYSE: TRCO) and Liberty Media Corporation (NASDAQ:BATRK) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Tribune Media and Liberty Media Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tribune Media -6.12% 4.11% 1.50%
Liberty Media Corporation N/A N/A N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Tribune Media and Liberty Media Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tribune Media 1 4 1 0 2.00
Liberty Media Corporation 1 0 0 0 1.00

Tribune Media currently has a consensus price target of $43.88, indicating a potential upside of 6.54%. Liberty Media Corporation has a consensus price target of $25.00, indicating a potential upside of 11.86%. Given Liberty Media Corporation’s higher possible upside, analysts plainly believe Liberty Media Corporation is more favorable than Tribune Media.

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Liberty Media Corporation does not pay a dividend. Tribune Media pays out -75.2% of its earnings in the form of a dividend.

Risk and Volatility

Tribune Media has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.

Valuation and Earnings

This table compares Tribune Media and Liberty Media Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Tribune Media $1.95 billion 1.85 $14.24 million ($1.33) -30.96
Liberty Media Corporation $262.00 million 3.26 -$53.92 million ($1.41) -15.85

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

Insider & Institutional Ownership

96.7% of Tribune Media shares are owned by institutional investors. Comparatively, 71.5% of Liberty Media Corporation shares are owned by institutional investors. 0.6% of Tribune Media shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Tribune Media beats Liberty Media Corporation on 11 of the 15 factors compared between the two stocks.

Tribune Media Company Profile

Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

Liberty Media Corporation Company Profile

Liberty Media Corporation owns interests in subsidiaries and other companies, which are engaged in the media and entertainment industries. The Company’s principal businesses and assets include its consolidated subsidiaries Sirius XM Holdings Inc. (SIRIUS XM) and Braves Holdings, LLC (Braves Holdings), and its equity affiliate Live Nation Entertainment, Inc. (Live Nation). The Company’s segments are SIRIUS XM, and Corporate and other. SIRIUS XM provides a subscription-based satellite radio service. Through its subsidiaries and affiliates, the Company principally operates in North America. The Company also owns a portfolio of minority equity investments in publicly traded media companies, including Time Warner, Inc. and Viacom, Inc. SIRIUS XM transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through two satellite radio systems.

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