Analyzing Liberty Sirius XM Group Series A (LSXMA) and IDT (IDT)

Liberty Sirius XM Group Series A (NASDAQ: LSXMA) and IDT (NYSE:IDT) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Sirius XM Group Series A 0 2 7 0 2.78
IDT 0 1 0 0 2.00

Liberty Sirius XM Group Series A currently has a consensus price target of $54.75, indicating a potential upside of 20.28%. Given Liberty Sirius XM Group Series A’s stronger consensus rating and higher probable upside, analysts clearly believe Liberty Sirius XM Group Series A is more favorable than IDT.

Profitability

This table compares Liberty Sirius XM Group Series A and IDT’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
IDT -0.89% 0.06% 0.01%

Dividends

IDT pays an annual dividend of $0.36 per share and has a dividend yield of 6.3%. Liberty Sirius XM Group Series A does not pay a dividend.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Sirius XM Group Series A $5.43 billion 2.80 $1.11 billion $3.31 13.75
IDT $1.50 billion 0.09 $8.17 million N/A N/A

Liberty Sirius XM Group Series A has higher revenue and earnings than IDT.

Insider & Institutional Ownership

25.7% of Liberty Sirius XM Group Series A shares are owned by institutional investors. Comparatively, 46.5% of IDT shares are owned by institutional investors. 20.5% of IDT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Liberty Sirius XM Group Series A has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, IDT has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Summary

Liberty Sirius XM Group Series A beats IDT on 8 of the 13 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 IDT

IDT Corporation, through its subsidiaries, operates primarily in the telecommunications and payment industries in the United States and internationally. It operates in three segments: Telecom Platform Services, Unified Communications as a Service, and Consumer Phone Services. The Telecom Platform Services segment offers retail telecommunication products, including international long-distance calling products primarily to foreign-born communities; payment offerings, such as international and domestic airtime top-up, and international money transfer services; and wholesale international long distance traffic termination services for tier 1 fixed line and mobile network operators, as well as for other service providers. The Unified Communications as a Service segment provides voice over Internet protocol products and services under the net2phone brand name, including cable telephony services; cloud-based private branch exchange (PBX) services to enterprise customers primarily through value-added resellers, service providers, telecom agents, and managed service providers; session initiation protocol trunking services that support inbound and outbound domestic and international calling from an IP PBX; and PicuP, an automated business phone service that answers, routes, and manages voice calls. This segment also offers its services through distributors, system integrators, and master agents. The Consumer Phone Services segment provides bundled local/long distance phone services, including unlimited local, regional toll and domestic long distance calling, and calling features under the IDT America brand name to residential customers. As of July 31, 2017, this segment had approximately 3,500 active customers for its bundled local/long distance plans and approximately 14,500 customers for its long distance-only plans. The company is also involved in real estate holdings and other businesses. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey.

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