Videocon d2h Limited (NASDAQ: VDTH) and Hemisphere Media Group (NASDAQ:HMTV) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Videocon d2h Limited and Hemisphere Media Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Videocon d2h Limited 0.93% 3.78% 0.67%
Hemisphere Media Group 12.92% 6.72% 3.45%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Videocon d2h Limited and Hemisphere Media Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Videocon d2h Limited 0 0 0 0 N/A
Hemisphere Media Group 0 0 1 0 3.00

Hemisphere Media Group has a consensus price target of $16.00, indicating a potential upside of 22.61%. Given Hemisphere Media Group’s higher probable upside, analysts plainly believe Hemisphere Media Group is more favorable than Videocon d2h Limited.

Insider and Institutional Ownership

27.8% of Videocon d2h Limited shares are owned by institutional investors. Comparatively, 28.1% of Hemisphere Media Group shares are owned by institutional investors. 13.7% of Hemisphere Media Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Videocon d2h Limited and Hemisphere Media Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Videocon d2h Limited $479.72 million 2.07 $158.98 million $0.04 235.56
Hemisphere Media Group $140.86 million 3.95 $57.50 million $0.46 28.37

Videocon d2h Limited has higher revenue and earnings than Hemisphere Media Group. Hemisphere Media Group is trading at a lower price-to-earnings ratio than Videocon d2h Limited, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Videocon d2h Limited has a beta of 1.9, indicating that its share price is 90% more 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.

Summary

Hemisphere Media Group beats Videocon d2h Limited on 9 of the 13 factors compared between the two stocks.

About Videocon d2h Limited

Videocon d2h Limited is engaged in the provision of direct to home (DTH) subscription television services to subscribers in India. The Company operates under the Videocon d2h brand. The Company is engaged in the transmission of programming to subscribers through satellite broadcasting. Its subscribers have access to over 550 national and international channels and services, including approximately 45 high definition (HD) channels and services, and over 42 audio and video services through its Music Channel Services through several subscription packages, as well as the option of choosing add-ons and a la carte channels and receiving certain discounts through long-term recharge offers. Its subscription packages include Flexi Pack, Super Gold Pack, Gold Maxi pack, Gold Kids, New Gold Sports Pack, Gold Sports Kids, New Diamond Pack, Platinum Pack and Platinum HD Pack. It offers value-added services, such as movie channel services, active music channel services, tickers and smart services.

About Hemisphere Media Group

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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