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LILA vs STGW

LILA
Liberty Latin America Ltd.
BEARISH
Price
$8.13
Market Cap
$1.63B
Sector
Communication Services
AI Confidence
85%
STGW
Stagwell Inc.
NEUTRAL
Price
$7.28
Market Cap
$1.85B
Sector
Communication Services
AI Confidence
80%

Valuation

P/E Ratio
LILA
--
STGW
91.0
Forward P/E
LILA
11.29
STGW
6.24
P/B Ratio
LILA
2.93
STGW
2.42
P/S Ratio
LILA
0.37
STGW
0.63
EV/EBITDA
LILA
9.02
STGW
10.48

Profitability

Gross Margin
LILA
78.03%
STGW
36.54%
Operating Margin
LILA
-26.05%
STGW
7.32%
Profit Margin
LILA
-13.76%
STGW
1.0%
ROE
LILA
-41.72%
STGW
3.86%
ROA
LILA
1.13%
STGW
2.34%

Growth

Revenue Growth
LILA
1.7%
STGW
2.4%
Earnings Growth
LILA
--
STGW
65.1%

Financial Health

Debt/Equity
LILA
8.32
STGW
2.0
Current Ratio
LILA
1.14
STGW
0.79
Quick Ratio
LILA
0.86
STGW
0.7

Dividends

Dividend Yield
LILA
--
STGW
--
Payout Ratio
LILA
0.0%
STGW
0.0%

AI Verdict

LILA BEARISH

LILA exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and operational deterioration. The company is dangerously over-leveraged with a Debt/Equity ratio of 8.32, vastly exceeding the sector average of 0.90. While the stock has seen a 1-year price recovery and maintains a low Price/Sales ratio of 0.37, these are overshadowed by negative profit margins (-13.76%) and a disastrous ROE of -41.72%. The disconnect between the analyst 'Buy' recommendation and the deterministic health scores suggests a speculative bet on restructuring rather than a value-based investment.

Strengths
Strong Gross Margin of 78.03%
Very low Price/Sales ratio (0.37) suggesting potential undervaluation of revenue
Positive 1-year price momentum (+53.4%)
Risks
Extreme leverage with Debt/Equity at 8.32
Critical financial health (Piotroski F-Score 2/9)
Consistent and massive earnings misses (Average surprise -1113.20% over last 4 quarters)
STGW NEUTRAL

STGW presents a stark contrast between fundamental value and growth momentum. While the Piotroski F-Score of 6/9 indicates stable financial health, the stock trades at a massive premium to its Graham Number ($2.33) and Intrinsic Value ($2.36). Explosive Q/Q earnings growth (291.30%) and a low Forward P/E (6.24) suggest a significant turnaround in profitability, yet stagnant revenue growth (2.40%) and poor liquidity (Current Ratio 0.79) create a high-risk profile.

Strengths
Explosive Q/Q earnings growth of 291.30%
Strong recent price momentum (+41.9% over 6 months)
Low Price-to-Sales ratio (0.63) suggesting undervalued revenue stream
Risks
Severe overvaluation relative to Graham and Intrinsic value baselines
Liquidity risk with a Current Ratio of 0.79 and Quick Ratio of 0.70
High leverage with a Debt/Equity ratio of 2.00

Compare Another Pair

LILA vs STGW: Head-to-Head Comparison

This page compares Liberty Latin America Ltd. (LILA) and Stagwell Inc. (STGW) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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