Videocon d2h (NASDAQ: VDTH) and Time Warner Cable (NYSE:TWC) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Videocon d2h and Time Warner Cable, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Videocon d2h 0 0 0 0 N/A
Time Warner Cable 0 0 0 0 N/A

Profitability

This table compares Videocon d2h and Time Warner Cable’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Videocon d2h 0.99% 3.92% 0.72%
Time Warner Cable 7.98% 21.59% 4.00%

Insider and Institutional Ownership

27.7% of Videocon d2h shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Videocon d2h and Time Warner Cable’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Videocon d2h $458.00 million 2.13 $4.53 million $0.04 231.75
Time Warner Cable N/A N/A N/A $6.54 32.04

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

Dividends

Time Warner Cable pays an annual dividend of $3.00 per share and has a dividend yield of 1.4%. Videocon d2h does not pay a dividend. Time Warner Cable pays out 45.9% of its earnings in the form of a dividend. Time Warner Cable has raised its dividend for 7 consecutive years.

Summary

Time Warner Cable beats Videocon d2h on 6 of the 9 factors compared between the two stocks.

About Videocon d2h

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 Time Warner Cable

Time Warner Cable Inc. (TWC) is a provider of video, high-speed data and voice services in the United States with clustered cable systems located in approximately five geographic areas, including New York State, the Carolinas, the Midwest, Southern California and Texas. The Company operates through three segments: Residential Services, Business Services and Other Operations. The Company’s residential services segment includes security and home management services. Its business services segment includes networking and transport services, including cell tower backhaul services, and enterprise-class, cloud-enabled hosting, managed applications and services. The Company serves approximately 15.9 million residential and business services customers. The Company also sells video and online advertising inventory to various local, regional and national customers.

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