Discovery Communications (NASDAQ: DISCB) and Discovery Communications (NASDAQ:DISCA) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Profitability

This table compares Discovery Communications and Discovery Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Discovery Communications 16.63% 22.24% 6.83%
Discovery Communications 16.63% 22.24% 6.83%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Discovery Communications and Discovery Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 0 0 0 0 N/A
Discovery Communications 3 11 3 0 2.00

Discovery Communications has a consensus target price of $23.71, indicating a potential upside of 18.33%. Given Discovery Communications’ higher probable upside, analysts plainly believe Discovery Communications is more favorable than Discovery Communications.

Insider and Institutional Ownership

48.3% of Discovery Communications shares are held by institutional investors. 6.8% of Discovery Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Discovery Communications and Discovery Communications’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Discovery Communications $6.50 billion 1.17 $1.19 billion $1.91 10.47
Discovery Communications $6.50 billion 1.17 $1.19 billion $1.91 10.49

Discovery Communications is trading at a lower price-to-earnings ratio than Discovery Communications, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Discovery Communications has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Discovery Communications has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Summary

Discovery Communications beats Discovery Communications on 6 of the 7 factors compared between the two stocks.

About Discovery Communications

Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company’s portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.

About Discovery Communications

Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company’s portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.

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