Reviewing Comcast (CMCSA) & Grupo Televisa SAB (TV)

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

Dividends

Comcast pays an annual dividend of $0.63 per share and has a dividend yield of 1.6%. Grupo Televisa SAB pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Comcast pays out 13.2% of its earnings in the form of a dividend. Grupo Televisa SAB pays out 19.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Comcast is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Comcast 26.87% 16.47% 5.34%
Grupo Televisa SAB 4.85% 4.62% 1.55%

Risk & Volatility

Comcast has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Grupo Televisa SAB has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Comcast and Grupo Televisa SAB, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comcast 0 3 23 0 2.88
Grupo Televisa SAB 0 3 2 0 2.40

Comcast currently has a consensus price target of $47.74, indicating a potential upside of 21.07%. Grupo Televisa SAB has a consensus price target of $26.00, indicating a potential upside of 36.84%. Given Grupo Televisa SAB’s higher possible upside, analysts plainly believe Grupo Televisa SAB is more favorable than Comcast.

Institutional and Insider Ownership

82.5% of Comcast shares are owned by institutional investors. Comparatively, 51.4% of Grupo Televisa SAB shares are owned by institutional investors. 1.3% of Comcast shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comcast $84.53 billion 2.17 $22.71 billion $4.78 8.25
Grupo Televisa SAB $5.17 billion 2.11 $199.46 million $0.41 46.34

Comcast has higher revenue and earnings than Grupo Televisa SAB. Comcast 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.

Summary

Comcast beats Grupo Televisa SAB on 13 of the 16 factors compared between the two stocks.

About Comcast

Comcast Corporation is a media and technology company. The Company has two primary businesses: Comcast Cable and NBCUniversal. Its Comcast Cable business operates in the Cable Communications segment. Its NBCUniversal business operates in four business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Its Cable Communications segment consists of the operations of Comcast Cable, which provides video, high-speed Internet and voice services to residential customers under the XFINITY brand. Its Cable Networks segment consists of a portfolio of national cable networks. Its Broadcast Television segment operates the NBC and Telemundo broadcast networks. Its Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment across the world, and it also develops, produces and licenses live stage plays. Its Theme Parks segment consists primarily of its Universal theme parks in Orlando, Florida and Hollywood, California.

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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