Critical Comparison: Central European Media Enterprises (CETV) vs. Liberty Media Corporation (NASDAQ:LSXMA)

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

Institutional & Insider Ownership

28.4% of Central European Media Enterprises shares are held by institutional investors. Comparatively, 24.2% of Liberty Media Corporation shares are held by institutional investors. 1.8% of Central European Media Enterprises shares are held 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.

Earnings & Valuation

This table compares Central European Media Enterprises and Liberty Media Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Central European Media Enterprises $650.66 million 0.92 $162.63 million ($0.10) -41.50
Liberty Media Corporation $5.22 billion 0.83 $1.77 billion $1.36 30.94

Liberty Media Corporation has higher revenue and earnings than Central European Media Enterprises. Central European Media Enterprises 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.

Risk & Volatility

Central European Media Enterprises has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Liberty Media Corporation has a beta of 2.69, suggesting that its stock price is 169% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Central European Media Enterprises and Liberty Media Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central European Media Enterprises 0 0 2 0 3.00
Liberty Media Corporation 0 3 4 0 2.57

Central European Media Enterprises currently has a consensus price target of $3.30, suggesting a potential downside of 20.48%. Liberty Media Corporation has a consensus price target of $47.40, suggesting a potential upside of 12.64%. Given Liberty Media Corporation’s higher possible upside, analysts clearly believe Liberty Media Corporation is more favorable than Central European Media Enterprises.

Profitability

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

Net Margins Return on Equity Return on Assets
Central European Media Enterprises 2.82% -18.46% 1.26%
Liberty Media Corporation N/A N/A N/A

Summary

Liberty Media Corporation beats Central European Media Enterprises on 7 of the 13 factors compared between the two stocks.

About Central European Media Enterprises

Central European Media Enterprises Ltd. (CME Ltd.) is a media and entertainment company operating in Central and Eastern Europe. The Company’s assets are held through a series of Dutch and Curacao holding companies. The Company manages its business on a geographical basis, with six segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. The Bulgaria segment operated one general entertainment channel, BTV, and five other channels, including BTV CINEMA, BTV COMEDY, RING.BG, BTV ACTION and BTV LADY, as of December 31, 2016. The Croatia segment operated one general entertainment channel, NOVA TV (Croatia), as of December 31, 2016. The Czech Republic segment operated one general entertainment channel, TV NOVA (Czech Republic), as of December 31, 2016. The Romania segment operated one general entertainment channel, PRO TV, as of December 31, 2016. The Slovak Republic segment operated one general entertainment channel, TV MARKIZA, as of December 31, 2016.

About Liberty Media Corporation

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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