Adeia (NASDAQ:ADEA – Get Free Report) and Liberty Global (NASDAQ:LBTYA – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Profitability
This table compares Adeia and Liberty Global’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Adeia | 12.01% | 28.37% | 9.44% |
Liberty Global | -54.02% | -22.30% | -10.03% |
Earnings and Valuation
This table compares Adeia and Liberty Global”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Adeia | $388.79 million | 3.39 | $67.37 million | $0.36 | 33.47 |
Liberty Global | $7.49 billion | 0.64 | -$4.05 billion | ($10.15) | -1.31 |
Risk & Volatility
Adeia has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Liberty Global has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
Insider & Institutional Ownership
97.4% of Adeia shares are owned by institutional investors. Comparatively, 37.2% of Liberty Global shares are owned by institutional investors. 0.4% of Adeia shares are owned by company insiders. Comparatively, 11.5% of Liberty Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Adeia and Liberty Global, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Adeia | 0 | 0 | 2 | 0 | 3.00 |
Liberty Global | 0 | 5 | 3 | 0 | 2.38 |
Adeia currently has a consensus price target of $15.50, suggesting a potential upside of 28.63%. Liberty Global has a consensus price target of $22.90, suggesting a potential upside of 71.92%. Given Liberty Global’s higher probable upside, analysts plainly believe Liberty Global is more favorable than Adeia.
Summary
Adeia beats Liberty Global on 10 of the 14 factors compared between the two stocks.
About Adeia
Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.
About Liberty Global
Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.
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