Cable One (NYSE: CABO) and Hemisphere Media Group (NASDAQ:HMTV) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitabiliy, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Cable One and Hemisphere Media Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cable One 1 0 2 0 2.33
Hemisphere Media Group 0 0 1 0 3.00

Cable One currently has a consensus target price of $636.00, suggesting a potential downside of 15.19%. Hemisphere Media Group has a consensus target price of $16.00, suggesting a potential upside of 30.61%. Given Hemisphere Media Group’s stronger consensus rating and higher probable upside, analysts clearly believe Hemisphere Media Group is more favorable than Cable One.

Valuation and Earnings

This table compares Cable One and Hemisphere Media Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cable One $824.25 million 5.21 $346.62 million $18.28 41.02
Hemisphere Media Group $140.71 million 3.72 $57.69 million $0.45 27.22

Cable One has higher revenue and earnings than Hemisphere Media Group. Hemisphere Media Group is trading at a lower price-to-earnings ratio than Cable One, indicating that it is currently the more affordable of the two stocks.

Dividends

Cable One pays an annual dividend of $6.00 per share and has a dividend yield of 0.8%. Hemisphere Media Group does not pay a dividend. Cable One pays out 32.8% of its earnings in the form of a dividend.

Risk & Volatility

Cable One has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Hemisphere Media Group has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Institutional and Insider Ownership

74.4% of Cable One shares are held by institutional investors. Comparatively, 27.1% of Hemisphere Media Group shares are held by institutional investors. 1.3% of Cable One shares are held by insiders. Comparatively, 21.4% of Hemisphere Media Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cable One and Hemisphere Media Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cable One 12.75% 23.30% 7.54%
Hemisphere Media Group 12.82% 6.81% 3.44%

Summary

Cable One beats Hemisphere Media Group on 10 of the 16 factors compared between the two stocks.

Cable One Company Profile

Cable One, Inc. is a provider of data, video and voice services. The Company offers products, including Residential Video Services, Residential Data Services, Residential Voice Services, Business Services and Advertising. As of May 1, 2017, the Company provided data, video and voice services in 21 Western, Midwestern and Southern states. As of December 31, 2016, the Company provided these broadband services to residential and business customers in more than 35 cable systems covering over 400 cities and towns. The Company provides these broadband services to residential and business customers in approximately 40 cable systems covering over 400 cities and towns. The markets it serves are non-metropolitan, secondary markets, with its customers located in five states: Arizona, Idaho, Mississippi, Oklahoma and Texas. The Company offers a range of residential video services, generally ranging from a basic video service to digital service with access to hundreds of channels.

Hemisphere Media Group Company Profile

Hemisphere Media Group, Inc. is a Spanish-language media company. As of December 31, 2016, the Company served the United States Hispanic and Latin American markets with five Spanish-language cable television networks distributed in the United States, two Spanish-language cable television networks distributed in Latin America, and a broadcast television network in Puerto Rico. As of December 31, 2016, the Company owned and operated the Spanish language networks and content production platform, including movie and telenovela channels, two Hispanic entertainment genres, and the cable television networks. The Company’s United States Hispanic groups include Cinelatino, WAPA, WAPA America, Pasiones, Centroamerica TV and Television Dominicana. WAPA is an independent broadcast television network. WAPA is distributed by various cable, satellite and telecommunication service providers in Puerto Rico.

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