Critical Analysis: Liberty Sirius XM Group Series A (LSXMA) versus Telenor ASA (TELNY)

Liberty Sirius XM Group Series A (NASDAQ: LSXMA) and Telenor ASA (OTCMKTS:TELNY) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Liberty Sirius XM Group Series A and Telenor ASA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Sirius XM Group Series A 0 2 7 0 2.78
Telenor ASA 0 1 1 0 2.50

Liberty Sirius XM Group Series A presently has a consensus target price of $54.75, indicating a potential upside of 17.41%. Given Liberty Sirius XM Group Series A’s stronger consensus rating and higher probable upside, equities analysts clearly believe Liberty Sirius XM Group Series A is more favorable than Telenor ASA.

Volatility & Risk

Liberty Sirius XM Group Series A has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, Telenor ASA has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Insider and Institutional Ownership

25.8% of Liberty Sirius XM Group Series A shares are owned by institutional investors. Comparatively, 0.0% of Telenor ASA shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Liberty Sirius XM Group Series A and Telenor ASA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Sirius XM Group Series A $5.43 billion 2.87 $1.11 billion $3.31 14.09
Telenor ASA $15.10 billion 1.89 $1.45 billion $1.27 14.96

Telenor ASA has higher revenue and earnings than Liberty Sirius XM Group Series A. Liberty Sirius XM Group Series A is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liberty Sirius XM Group Series A and Telenor ASA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Sirius XM Group Series A N/A N/A N/A
Telenor ASA 13.35% 24.10% 7.55%

Dividends

Telenor ASA pays an annual dividend of $0.83 per share and has a dividend yield of 4.4%. Liberty Sirius XM Group Series A does not pay a dividend. Telenor ASA pays out 65.4% of its earnings in the form of a dividend.

Summary

Liberty Sirius XM Group Series A beats Telenor ASA on 8 of the 15 factors compared between the two stocks.

About Liberty Sirius XM Group Series A

The Liberty SiriusXM Group, through its subsidiary Sirius XM Holdings Inc., transmits music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States and Canada. The company also provides infotainment services; and Sirius XM on Demand over its Internet radio service through applications for mobile and home devices, and other consumer electronic equipment. In addition, it offers connected vehicle services; and Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings. Further, the company engages in the direct sale of satellite radios and accessories. It distributes its satellite radios through automakers, as well as through its retailers and Website; and satellite radio services to satellite radios. As of December 31, 2017, it had approximately 32.7 million subscribers. The company is based in Englewood, Colorado. The Liberty SiriusXM Group is a subsidiary of Liberty Media Corporation.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company's mobile communication services comprise voice, data, Internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcasting services include DTH, broadcasting and data communication services through satellite, and terrestrial radio and TV transmission. The company also provides wholesale services that enable the operators to route international voice, messaging, data, and signaling traffic through a single connection to a global network, as well as handles international roaming relationships. In addition, it offers digital services, such as international communication services and machine to machine communication, as well as Internet based services, digital media advertising, and financial services. Further, the company sells mobile devices; and leases base station sites, equipment primarily in the satellite business, and properties. Telenor ASA was founded in 1885 and is headquartered in Fornebu, Norway.

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