Discovery Communications (NASDAQ: DISCA) is one of 17 public companies in the “Television Broadcasting” industry, but how does it compare to its rivals? We will compare Discovery Communications to similar companies based on the strength of its valuation, dividends, earnings, analyst recommendations, institutional ownership, profitability and risk.

Valuation and Earnings

This table compares Discovery Communications and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Discovery Communications $6.50 billion $1.19 billion 9.00
Discovery Communications Competitors $3.48 billion $571.33 million 41.72

Discovery Communications has higher revenue and earnings than its rivals. Discovery Communications is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Discovery Communications and its rivals’ 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 Competitors 10.66% 83.56% 5.93%

Volatility and Risk

Discovery Communications has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Discovery Communications’ rivals have a beta of 1.57, suggesting that their average share price is 57% more volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 3 12 3 0 2.00
Discovery Communications Competitors 84 548 498 4 2.37

Discovery Communications presently has a consensus target price of $24.36, suggesting a potential upside of 41.69%. As a group, “Television Broadcasting” companies have a potential upside of 21.99%. Given Discovery Communications’ higher probable upside, research analysts plainly believe Discovery Communications is more favorable than its rivals.

Insider & Institutional Ownership

45.8% of Discovery Communications shares are owned by institutional investors. Comparatively, 68.8% of shares of all “Television Broadcasting” companies are owned by institutional investors. 6.8% of Discovery Communications shares are owned by company insiders. Comparatively, 8.2% of shares of all “Television Broadcasting” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Discovery Communications rivals beat Discovery Communications on 8 of the 13 factors compared.

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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