TiVo Corporation (NASDAQ: TIVO) and Sinclair Broadcast Group (NASDAQ:SBGI) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for TiVo Corporation and Sinclair Broadcast Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TiVo Corporation 0 1 5 0 2.83
Sinclair Broadcast Group 0 0 5 0 3.00

TiVo Corporation presently has a consensus price target of $27.60, suggesting a potential upside of 49.19%. Sinclair Broadcast Group has a consensus price target of $47.00, suggesting a potential upside of 58.78%. Given Sinclair Broadcast Group’s stronger consensus rating and higher possible upside, analysts clearly believe Sinclair Broadcast Group is more favorable than TiVo Corporation.

Dividends

TiVo Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 3.9%. Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. TiVo Corporation pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sinclair Broadcast Group pays out 24.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares TiVo Corporation and Sinclair Broadcast Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TiVo Corporation $819.79 million 2.72 $259.28 million $0.30 61.67
Sinclair Broadcast Group $2.82 billion 1.08 $893.47 million $2.90 10.21

Sinclair Broadcast Group has higher revenue and earnings than TiVo Corporation. Sinclair Broadcast Group is trading at a lower price-to-earnings ratio than TiVo Corporation, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

TiVo Corporation has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Sinclair Broadcast Group has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Profitability

This table compares TiVo Corporation and Sinclair Broadcast Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TiVo Corporation 2.47% 10.59% 5.99%
Sinclair Broadcast Group 9.70% 32.06% 4.29%

Institutional and Insider Ownership

89.0% of TiVo Corporation shares are owned by institutional investors. Comparatively, 83.1% of Sinclair Broadcast Group shares are owned by institutional investors. 3.6% of TiVo Corporation shares are owned by insiders. Comparatively, 28.2% of Sinclair Broadcast Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Sinclair Broadcast Group beats TiVo Corporation on 11 of the 15 factors compared between the two stocks.

TiVo Corporation Company Profile

TiVo Corporation is engaged in offering media and entertainment products. The Company operates through two segments: Intellectual Property Licensing and Product. The Company’s Product segment includes a suite of component technologies that can be integrated into media service provider internally developed platforms or deployed as an integrated TiVo solution. The Company provides a range of intellectual property, cloud-based services and set-top box solutions that enable people to use online video, television, movies and music entertainment, including content discovery through device embedded and cloud-based interactive program guides (IPGs), digital video recorders (DVRs), natural language voice and text search, cloud-based recommendations services and its entertainment metadata (descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, sports, music, books, games or other entertainment content).

Sinclair Broadcast Group Company Profile

Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

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