Discovery Communications (NASDAQ: DISCA) and LIN Media (NYSE:TVL) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Discovery Communications and LIN Media, as provided by MarketBeat.

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

Discovery Communications presently has a consensus target price of $23.71, indicating a potential upside of 20.68%.

Institutional and Insider Ownership

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

Valuation and Earnings

This table compares Discovery Communications and LIN Media’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Discovery Communications $6.50 billion 1.15 $1.19 billion $1.90 10.34
LIN Media N/A N/A N/A $2.87 N/A

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

Profitability

This table compares Discovery Communications and LIN Media’s 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%
LIN Media N/A N/A N/A

Summary

Discovery Communications beats LIN Media on 7 of the 8 factors compared between the two stocks.

Discovery Communications Company Profile

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.

LIN Media Company Profile

LIN Media LLC (LIN Media) is a local multimedia company. The Company operates or services 43 television stations and seven digital channels in 23 of the United States markets, and a portfolio of Websites, applications and mobile products. Its television stations deliver local news, community service, and sports and entertainment programming to viewers, reaching 10.5% of homes owning televisions in the United States. In April 2013, it acquired a majority ownership position in HYFN. On July 30, 2013, LIN Media announced that it had completed its merger with LIN TV Corp., with LIN Media, as the surviving company in the merger. In February 2014, the Company acquired Federated Media Publishing, Inc.

Receive News & Ratings for Discovery Communications Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Discovery Communications and related companies with Analyst Ratings Network's FREE daily email newsletter.