Comcast Corporation (NASDAQ: CMCSA) and Gray Television (NYSE:GTN) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Risk & Volatility

Comcast Corporation has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Gray Television has a beta of 3.29, meaning that its stock price is 229% more volatile than the S&P 500.

Insider and Institutional Ownership

82.0% of Comcast Corporation shares are held by institutional investors. Comparatively, 89.5% of Gray Television shares are held by institutional investors. 1.3% of Comcast Corporation shares are held by company insiders. Comparatively, 12.0% of Gray Television shares are held by company 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.

Analyst Recommendations

This is a breakdown of current recommendations for Comcast Corporation and Gray Television, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comcast Corporation 0 1 22 0 2.96
Gray Television 0 0 4 0 3.00

Comcast Corporation currently has a consensus price target of $45.83, suggesting a potential upside of 18.74%. Gray Television has a consensus price target of $18.25, suggesting a potential upside of 30.36%. Given Gray Television’s stronger consensus rating and higher probable upside, analysts plainly believe Gray Television is more favorable than Comcast Corporation.

Dividends

Comcast Corporation pays an annual dividend of $0.63 per share and has a dividend yield of 1.6%. Gray Television does not pay a dividend. Comcast Corporation pays out 31.7% of its earnings in the form of a dividend.

Profitability

This table compares Comcast Corporation and Gray Television’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comcast Corporation 11.45% 16.80% 5.23%
Gray Television 13.38% 17.32% 3.12%

Earnings & Valuation

This table compares Comcast Corporation and Gray Television’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Comcast Corporation $83.97 billion 2.17 $27.79 billion $1.99 19.45
Gray Television $872.25 million 1.15 $332.14 million $1.60 8.75

Comcast Corporation has higher revenue and earnings than Gray Television. Gray Television is trading at a lower price-to-earnings ratio than Comcast Corporation, indicating that it is currently the more affordable of the two stocks.

About Comcast Corporation

Comcast Corporation is a media and technology company. The Company has two primary businesses: Comcast Cable and NBCUniversal. Its Comcast Cable business operates in the Cable Communications segment. Its NBCUniversal business operates in four business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Its Cable Communications segment consists of the operations of Comcast Cable, which provides video, high-speed Internet and voice services to residential customers under the XFINITY brand. Its Cable Networks segment consists of a portfolio of national cable networks. Its Broadcast Television segment operates the NBC and Telemundo broadcast networks. Its Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment across the world, and it also develops, produces and licenses live stage plays. Its Theme Parks segment consists primarily of its Universal theme parks in Orlando, Florida and Hollywood, California.

About Gray Television

Gray Television, Inc. is a television broadcast company. The Company owns and operates television stations and digital assets in various markets across the United States. As of February 21, 2017, the Company owned and/or operated television stations in 54 television markets broadcasting over 200 separate programming streams, including 37 affiliates of the CBS Network (CBS), 29 affiliates of the NBC Network (NBC), 20 affiliates of the ABC Network (ABC) and 15 affiliates of the FOX Network (FOX). In addition to a primary broadcast channel, each of its stations can also broadcast additional secondary digital channels within a market by utilizing the same bandwidth, but with different programming from the primary channel. The Company also broadcasts local news/weather channels in certain of its existing markets. Along with affiliations with ABC, CBS and FOX, the Company’s secondary channels are affiliated with various smaller networks and program services.

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