Discovery Communications (NASDAQ: DISCA) is one of 15 public companies in the “Television Broadcasting” industry, but how does it weigh in compared to its rivals? We will compare Discovery Communications to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, dividends, valuation, profitability and earnings.

Volatility & Risk

Discovery Communications has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Discovery Communications’ rivals have a beta of 1.56, suggesting that their average stock price is 56% more volatile than the S&P 500.

Earnings & Valuation

This table compares Discovery Communications and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Discovery Communications $6.50 billion $1.19 billion 9.24
Discovery Communications Competitors $3.48 billion $571.33 million 37.91

Discovery Communications has higher revenue and earnings than its rivals. Discovery Communications is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Discovery Communications and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 3 11 3 0 2.00
Discovery Communications Competitors 85 548 499 4 2.37

Discovery Communications currently has a consensus price target of $24.36, indicating a potential upside of 38.79%. As a group, “Television Broadcasting” companies have a potential upside of 20.85%. Given Discovery Communications’ higher possible upside, equities research analysts plainly believe Discovery Communications is more favorable than its rivals.

Institutional & Insider Ownership

45.3% of Discovery Communications shares are held by institutional investors. Comparatively, 69.0% of shares of all “Television Broadcasting” companies are held by institutional investors. 6.8% of Discovery Communications shares are held by insiders. Comparatively, 8.2% of shares of all “Television Broadcasting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Discovery Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Discovery Communications 16.63% 22.24% 6.83%
Discovery Communications Competitors 11.20% 95.07% 6.14%

Summary

Discovery Communications rivals beat Discovery Communications on 7 of the 13 factors compared.

About Discovery Communications

Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company’s portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.

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