SoftBank Group (OTCMKTS:SFTBF – Get Free Report) and Liberty Latin America (NASDAQ:LILA – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
25.0% of SoftBank Group shares are held by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are held by institutional investors. 6.2% of Liberty Latin America shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares SoftBank Group and Liberty Latin America”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoftBank Group | N/A | N/A | N/A | $569.15 | 0.06 |
| Liberty Latin America | $4.44 billion | 0.38 | -$611.20 million | ($2.48) | -3.39 |
SoftBank Group has higher earnings, but lower revenue than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than SoftBank Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for SoftBank Group and Liberty Latin America, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoftBank Group | 0 | 0 | 0 | 0 | 0.00 |
| Liberty Latin America | 1 | 0 | 1 | 0 | 2.00 |
Liberty Latin America has a consensus target price of $10.00, suggesting a potential upside of 18.91%. Given Liberty Latin America’s stronger consensus rating and higher probable upside, analysts clearly believe Liberty Latin America is more favorable than SoftBank Group.
Profitability
This table compares SoftBank Group and Liberty Latin America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoftBank Group | N/A | N/A | N/A |
| Liberty Latin America | -11.20% | -45.66% | -4.11% |
Summary
SoftBank Group beats Liberty Latin America on 6 of the 11 factors compared between the two stocks.
About SoftBank Group
SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; information and communication technology services products to enterprise customers; and communication device-related products and Internet of Things equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux/OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.
About Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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