TELE2 AB/ADR (OTCMKTS:TLTZY) versus Liberty Sirius XM Group Series A (OTCMKTS:LSXMA) Critical Review

Liberty Sirius XM Group Series A (NASDAQ:LSXMA) and TELE2 AB/ADR (OTCMKTS:TLTZY) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Profitability

This table compares Liberty Sirius XM Group Series A and TELE2 AB/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Sirius XM Group Series A 8.09% 2.93% 1.48%
TELE2 AB/ADR 6.00% 8.29% 3.64%

Institutional & Insider Ownership

28.9% of Liberty Sirius XM Group Series A shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Liberty Sirius XM Group Series A has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, TELE2 AB/ADR has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Liberty Sirius XM Group Series A and TELE2 AB/ADR’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 $7.79 billion 1.35 $106.00 million $1.53 21.88
TELE2 AB/ADR $2.93 billion 3.08 $529.32 million $0.20 32.79

TELE2 AB/ADR has lower revenue, but higher earnings than Liberty Sirius XM Group Series A. Liberty Sirius XM Group Series A is trading at a lower price-to-earnings ratio than TELE2 AB/ADR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Liberty Sirius XM Group Series A and TELE2 AB/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Sirius XM Group Series A 0 2 4 0 2.67
TELE2 AB/ADR 0 2 8 1 2.91

Liberty Sirius XM Group Series A currently has a consensus price target of $47.67, indicating a potential upside of 42.37%. Given Liberty Sirius XM Group Series A’s higher possible upside, equities analysts plainly believe Liberty Sirius XM Group Series A is more favorable than TELE2 AB/ADR.

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.

About TELE2 AB/ADR

Tele2 AB (publ), a telecom operator, provides telecommunication services for residential and business customers. The company offers mobile voice telephony, handset data, messaging, and value-added services, such as handset insurance, antivirus, and content services; mobile broadband services; and fixed voice and broadband, TV, and fixed and mobile telephony services. It also provides business-to-business telecommunication services, such as secure and encrypted connections, company-specific mobile network access points, etc.; cloud services comprising voice switching, data center services, business productivity solutions, etc.; and data connectivity, Ethernet connectivity, VPN services, and international IP connectivity services, as well as IoT solutions. The company serves approximately 17 million customers in 8 countries. It provides services in Sweden, Lithuania, Latvia, Estonia, Croatia, Germany, and internationally. Tele2 AB (publ) was founded in 1993 and is headquartered in Stockholm, Sweden.

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