Sinclair Broadcast Group (NASDAQ: SBGI) and Directv (NASDAQ:DTV) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Dividends

Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.8%. Directv does not pay a dividend. Sinclair Broadcast Group pays out 27.1% of its earnings in the form of a dividend.

Profitability

This table compares Sinclair Broadcast Group and Directv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sinclair Broadcast Group 9.06% 23.27% 3.58%
Directv 8.96% N/A 11.77%

Valuation & Earnings

This table compares Sinclair Broadcast Group and Directv’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sinclair Broadcast Group $2.74 billion 1.45 $245.30 million $2.66 14.68
Directv N/A N/A N/A $5.76 N/A

Sinclair Broadcast Group has higher revenue and earnings than Directv. Directv is trading at a lower price-to-earnings ratio than Sinclair Broadcast Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sinclair Broadcast Group and Directv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sinclair Broadcast Group 0 0 10 0 3.00
Directv 0 0 0 0 N/A

Sinclair Broadcast Group currently has a consensus target price of $47.40, indicating a potential upside of 21.38%.

Institutional and Insider Ownership

84.8% of Sinclair Broadcast Group shares are owned by institutional investors. 28.2% of Sinclair Broadcast Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Sinclair Broadcast Group beats Directv on 7 of the 10 factors compared between the two stocks.

Sinclair Broadcast Group Company Profile

Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

Directv Company Profile

DIRECTV is a provider of digital television entertainment in the United States and Latin America. The Company operates two direct-to-home (DTH) business units: DIRECTV U.S. and DIRECTV Latin America, which are engaged in acquiring, promoting, selling and distributing digital entertainment programming primarily through satellite to residential and commercial subscribers. In addition, the Company owns and operates two regional sports networks, and also owns non-controlling interests in two others, ROOT SPORTS Northwest and ROOT SPORTS Houston. The Company’s reportable segments include DIRECTV U.S., Sky Brasil and PanAmericana, which are engaged in acquiring, promoting, selling and distributing digital entertainment programming, and the Sports Networks, Eliminations and Other segment, which includes its regional sports networks that provide programming to local professional sports teams and college sporting events and locally produce their own programming.

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