Grupo Televisa (NYSE:TV – Get Free Report) and Optimum Communications (NYSE:OPTU – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Institutional & Insider Ownership
55.8% of Grupo Televisa shares are held by institutional investors. Comparatively, 54.8% of Optimum Communications shares are held by institutional investors. 43.4% of Optimum Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Grupo Televisa and Optimum Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grupo Televisa | -15.28% | -8.33% | -3.87% |
| Optimum Communications | -58.15% | N/A | -0.70% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grupo Televisa | 2 | 3 | 1 | 0 | 1.83 |
| Optimum Communications | 4 | 5 | 0 | 0 | 1.56 |
Grupo Televisa presently has a consensus price target of $6.55, suggesting a potential upside of 149.05%. Optimum Communications has a consensus price target of $0.92, suggesting a potential downside of 13.52%. Given Grupo Televisa’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Grupo Televisa is more favorable than Optimum Communications.
Earnings & Valuation
This table compares Grupo Televisa and Optimum Communications”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grupo Televisa | $3.07 billion | 0.46 | -$478.58 million | ($0.91) | -2.89 |
| Optimum Communications | $8.59 billion | 0.03 | -$1.87 billion | ($10.39) | -0.10 |
Grupo Televisa has higher earnings, but lower revenue than Optimum Communications. Grupo Televisa is trading at a lower price-to-earnings ratio than Optimum Communications, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Grupo Televisa has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Optimum Communications has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Summary
Grupo Televisa beats Optimum Communications on 9 of the 14 factors compared between the two stocks.
About Grupo Televisa
Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.
About Optimum Communications
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.
Receive News & Ratings for Grupo Televisa Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Grupo Televisa and related companies with MarketBeat.com's FREE daily email newsletter.
