Analyzing Entravision Communications Corporation (EVC) and Scripps Networks Interactive (SNI)
Entravision Communications Corporation (NYSE: EVC) and Scripps Networks Interactive (NASDAQ:SNI) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
Insider & Institutional Ownership
62.4% of Entravision Communications Corporation shares are held by institutional investors. Comparatively, 70.6% of Scripps Networks Interactive shares are held by institutional investors. 20.7% of Entravision Communications Corporation shares are held by insiders. Comparatively, 2.5% of Scripps Networks Interactive 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.
This table compares Entravision Communications Corporation and Scripps Networks Interactive’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Entravision Communications Corporation||7.03%||10.05%||3.50%|
|Scripps Networks Interactive||18.20%||29.93%||11.45%|
Volatility & Risk
Entravision Communications Corporation has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Scripps Networks Interactive has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
This is a breakdown of current recommendations for Entravision Communications Corporation and Scripps Networks Interactive, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Entravision Communications Corporation||0||2||1||0||2.33|
|Scripps Networks Interactive||1||8||4||0||2.23|
Entravision Communications Corporation presently has a consensus target price of $7.00, indicating a potential upside of 27.27%. Scripps Networks Interactive has a consensus target price of $82.64, indicating a potential downside of 3.44%. Given Entravision Communications Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Entravision Communications Corporation is more favorable than Scripps Networks Interactive.
Entravision Communications Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 2.4%. Scripps Networks Interactive pays an annual dividend of $1.20 per share and has a dividend yield of 1.4%. Entravision Communications Corporation pays out 61.9% of its earnings in the form of a dividend. Scripps Networks Interactive pays out 24.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Scripps Networks Interactive has increased its dividend for 3 consecutive years.
Earnings and Valuation
This table compares Entravision Communications Corporation and Scripps Networks Interactive’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Entravision Communications Corporation||$263.59 million||1.89||$61.52 million||$0.21||26.19|
|Scripps Networks Interactive||$3.47 billion||3.20||$1.54 billion||$4.84||17.68|
Scripps Networks Interactive has higher revenue and earnings than Entravision Communications Corporation. Scripps Networks Interactive is trading at a lower price-to-earnings ratio than Entravision Communications Corporation, indicating that it is currently the more affordable of the two stocks.
Scripps Networks Interactive beats Entravision Communications Corporation on 11 of the 17 factors compared between the two stocks.
About Entravision Communications Corporation
Entravision Communications Corporation is a media company. The Company reaches and engages Hispanics in the United States and certain border markets of Mexico across media channels and advertising platforms. The Company operates through three segments: television broadcasting, radio broadcasting and digital media. As of December 31, 2016, the Company owned and operated 54 television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, District of Columbia. It owns and operates Spanish-language radio stations in the United States. As of December 31, 2016, its radio stations consisted of 38 frequency modulation (FM) and 11 amplitude modulation (AM) stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The digital media segment provides digital advertising solutions that allow advertisers to reach online Hispanic audiences throughout the United States and Mexico.
About Scripps Networks Interactive
Scripps Networks Interactive, Inc. is a developer of lifestyle-oriented content, providing primarily home, food, travel and other lifestyle-related programing. The Company’s content is distributed through multiple methods, including television, the Internet, digital platforms and licensing arrangements. The Company’s segments include U.S. Networks, International Networks, and Corporate and Other. As of December 31, 2016, the Company’s U.S. Networks segment consisted of six national television networks: HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel and Great American Country. The Company’s International Networks includes the TVN S.A. (TVN) portfolio of networks and other lifestyle-oriented networks available in the United Kingdom, other European markets, the Middle East and Africa (EMEA), Asia Pacific (APAC) and Latin America. In addition to the broadcast networks, it also licenses a portion of its programing to other broadcasters around the world.
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