Liberty Latin America (NASDAQ: LILA) and Sprint (NYSE:S) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Insider & Institutional Ownership
22.2% of Liberty Latin America shares are owned by institutional investors. Comparatively, 13.6% of Sprint shares are owned by institutional investors. 0.2% of Sprint shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Liberty Latin America and Sprint, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Latin America||2||3||1||0||1.83|
Liberty Latin America presently has a consensus target price of $25.00, suggesting a potential upside of 18.65%. Sprint has a consensus target price of $5.68, suggesting a potential upside of 9.41%. Given Liberty Latin America’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Liberty Latin America is more favorable than Sprint.
Volatility & Risk
Liberty Latin America has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Sprint has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.
Valuation & Earnings
This table compares Liberty Latin America and Sprint’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Liberty Latin America||$3.59 billion||1.00||-$796.13 million||($4.65)||-4.53|
|Sprint||$33.35 billion||0.62||-$1.21 billion||$1.73||3.00|
Liberty Latin America has higher earnings, but lower revenue than Sprint. Liberty Latin America is trading at a lower price-to-earnings ratio than Sprint, indicating that it is currently the more affordable of the two stocks.
This table compares Liberty Latin America and Sprint’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Latin America||N/A||N/A||N/A|
Liberty Latin America beats Sprint on 8 of the 12 factors compared between the two stocks.
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.
Sprint Company Profile
Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.
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