Reviewing Liberty Sirius XM Group Series A (NASDAQ:LSXMA) and Windstream (NASDAQ:WINMQ)

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

Institutional and Insider Ownership

1.1% of Windstream shares are held by institutional investors. Comparatively, 27.1% of Liberty Sirius XM Group Series A shares are held by institutional investors. 1.2% of Windstream shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Windstream and Liberty Sirius XM Group Series A’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Windstream $5.71 billion 0.00 -$723.00 million ($21.40) -0.01
Liberty Sirius XM Group Series A $5.77 billion 2.15 $650.14 million $2.01 19.11

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

Profitability

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

Net Margins Return on Equity Return on Assets
Windstream -52.19% N/A -6.78%
Liberty Sirius XM Group Series A N/A N/A N/A

Analyst Recommendations

This is a summary of recent recommendations for Windstream and Liberty Sirius XM Group Series A, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Windstream 0 0 0 0 N/A
Liberty Sirius XM Group Series A 0 0 5 0 3.00

Liberty Sirius XM Group Series A has a consensus target price of $63.40, suggesting a potential upside of 65.06%. Given Liberty Sirius XM Group Series A’s higher probable upside, analysts clearly believe Liberty Sirius XM Group Series A is more favorable than Windstream.

Volatility & Risk

Windstream has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Liberty Sirius XM Group Series A has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Summary

Liberty Sirius XM Group Series A beats Windstream on 11 of the 12 factors compared between the two stocks.

About Windstream

Windstream Holdings, Inc. provides network communications and technology solutions in the United States. Its Consumer & Small Business segment offers services, including traditional local and long-distance voice services, and high-speed Internet services; and value-added services, such as security and online back-up. It also offers consumer video services; premium broadband and video entertainment services under the Kinetic brand; voice and Web conferencing products; and advanced hosted-voice, network management, and business continuity services, as well as owns and operates cable television franchises. This segment serves approximately 1.4 million residential and small business customers. The company's Enterprise segment offers integrated voice and data services, which deliver voice and broadband services over a single Internet connection, data transport services, and multi-site networking services; and other data services comprising cloud computing, and collocation and managed services as an alternative to traditional information technology infrastructure. Its Wholesale segment provides network bandwidth to other telecommunications carriers, network operators, and content providers; fiber-to-the-tower connections to support the wireless backhaul market; voice and data carrier services to other communications providers and large scale purchasers; and special access services and time division multiplexing private line transport. The company's Consumer CLEC segment offers traditional voice and long-distance services, nationwide Internet access services, and dial-up and high-speed, as well as online backup and various email services. Windstream Holdings, Inc. also leases and sells broadband modems and home networking gateways; and sells computers and phones. The company was incorporated in 2013 and is based in Little Rock, Arkansas. On February 25, 2019, Windstream Holdings, Inc. along with its 202 affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York.

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 streaming services through applications for mobile and home devices, and other consumer electronic equipment, as well as online. 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 provides satellite radio services to customers of rental car companies. As of December 31, 2018, it had approximately 34 million subscribers. The company is based in Englewood, Colorado. The Liberty SiriusXM Group is a subsidiary of Liberty Media Corporation.

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