Discovery Communications (NASDAQ: DISCK) and Discovery Communications (NASDAQ:DISCA) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

Discovery Communications has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Discovery Communications has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Discovery Communications and Discovery Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 0 2 0 0 2.00
Discovery Communications 3 11 3 0 2.00

Discovery Communications presently has a consensus target price of $22.00, suggesting a potential upside of 20.48%. Discovery Communications has a consensus target price of $23.71, suggesting a potential upside of 21.99%. Given Discovery Communications’ higher probable upside, analysts plainly believe Discovery Communications is more favorable than Discovery Communications.

Profitability

This table compares Discovery Communications and Discovery Communications’ 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 16.63% 22.24% 6.83%

Valuation and Earnings

This table compares Discovery Communications and Discovery Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Discovery Communications $6.50 billion 1.07 $1.19 billion $1.91 9.56
Discovery Communications $6.50 billion 1.13 $1.19 billion $1.90 10.23

Discovery Communications is trading at a lower price-to-earnings ratio than Discovery Communications, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

48.4% of Discovery Communications shares are held by institutional investors. Comparatively, 48.3% of Discovery Communications shares are held by institutional investors. 5.0% of Discovery Communications shares are held by insiders. Comparatively, 6.8% of Discovery Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Discovery Communications beats Discovery Communications on 6 of the 8 factors compared between the two stocks.

Discovery Communications Company Profile

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.

Discovery Communications Company Profile

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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