Critical Review: MSG Networks (MSGN) & Liberty Latin America (LILA)

MSG Networks (NYSE:MSGN) and Liberty Latin America (NASDAQ:LILA) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for MSG Networks and Liberty Latin America, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MSG Networks 1 2 3 0 2.33
Liberty Latin America 0 3 1 0 2.25

MSG Networks currently has a consensus target price of $27.00, suggesting a potential upside of 3.77%. Liberty Latin America has a consensus target price of $25.67, suggesting a potential upside of 51.87%. Given Liberty Latin America’s higher probable upside, analysts clearly believe Liberty Latin America is more favorable than MSG Networks.

Valuation and Earnings

This table compares MSG Networks and Liberty Latin America’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MSG Networks $696.65 million 2.79 $288.86 million $3.81 6.83
Liberty Latin America $3.59 billion 0.85 -$74.17 million ($0.41) -41.22

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

Profitability

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

Net Margins Return on Equity Return on Assets
MSG Networks 41.87% -27.90% 22.43%
Liberty Latin America N/A N/A N/A

Insider and Institutional Ownership

85.1% of MSG Networks shares are held by institutional investors. Comparatively, 22.0% of Liberty Latin America shares are held by institutional investors. 21.3% of MSG Networks shares are held by company insiders. Comparatively, 8.4% of Liberty Latin America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

MSG Networks has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Summary

MSG Networks beats Liberty Latin America on 10 of the 14 factors compared between the two stocks.

MSG Networks Company Profile

MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States. The company owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. It also operates MSG GO that provides live streaming and video on demand, as well as a Website and social media platforms for its brands. The company was formerly known as The Madison Square Garden Company and changed its name to MSG Networks Inc. in October 2015. MSG Networks Inc. was founded in 1969 and is based in New York, New York.

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.

Receive News & Ratings for MSG Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MSG Networks and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on reddit