Directv (DTV) and Grupo Televisa SAB (TV) Critical Survey

Directv (NASDAQ: DTV) and Grupo Televisa SAB (NYSE:TV) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Directv and Grupo Televisa SAB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Directv 8.96% N/A 11.77%
Grupo Televisa SAB 4.85% 4.62% 1.55%

Earnings & Valuation

This table compares Directv and Grupo Televisa SAB’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Directv N/A N/A N/A $5.76 N/A
Grupo Televisa SAB $5.17 billion 2.23 $199.46 million $0.41 49.10

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

Dividends

Grupo Televisa SAB pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Directv does not pay a dividend. Grupo Televisa SAB pays out 19.5% of its earnings in the form of a dividend.

Institutional & Insider Ownership

57.9% of Grupo Televisa SAB shares are held by institutional investors. 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.

Analyst Recommendations

This is a summary of current ratings for Directv and Grupo Televisa SAB, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Directv 0 0 0 0 N/A
Grupo Televisa SAB 0 3 3 0 2.50

Grupo Televisa SAB has a consensus target price of $26.00, suggesting a potential upside of 29.16%.

Summary

Grupo Televisa SAB beats Directv on 5 of the 9 factors compared between the two stocks.

About Directv

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.

About Grupo Televisa SAB

Grupo Televisa, S.A.B. is a media company in the international entertainment business. The Company operates in four business segments: Content, Sky, Telecommunications, and Other Businesses. It operates four broadcast channels in Mexico City and has affiliated stations throughout the country. It produces pay-television channels with national and international feeds, throughout Latin America, the United States, Canada, Europe and Asia Pacific. It exports its programs and formats to television networks around the world. It is also a Spanish-language magazine publisher. Its pay-television channels include three music, six movie, seven variety and entertainment channels and two sports channels. Its programs include telenovelas, newscasts, situation comedies, game shows, reality shows, children’s programs, comedy and variety programs, musical and cultural events, movies and educational programming. Its programming also includes broadcasts of special events and sports events in Mexico.

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