Head to Head Analysis: IDT (NYSE:IDT) & Grupo Televisa (NYSE:TV)

IDT (NYSE:IDT) and Grupo Televisa (NYSE:TV) are both small-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for IDT and Grupo Televisa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDT	0	1	0	0	2.00
Grupo Televisa	2	4	1	0	1.86

Grupo Televisa has a consensus target price of $5.27, suggesting a potential upside of 93.98%. Given Grupo Televisa’s higher probable upside, analysts plainly believe Grupo Televisa is more favorable than IDT.

Dividends

IDT pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. Grupo Televisa pays an annual dividend of $0.08 per share and has a dividend yield of 2.9%. IDT pays out 8.6% of its earnings in the form of a dividend. Grupo Televisa pays out -9.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. IDT has raised its dividend for 1 consecutive years. Grupo Televisa is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

IDT has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Earnings and Valuation

This table compares IDT and Grupo Televisa”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDT	$1.28 billion	1.14	$76.09 million	$3.27	17.82
Grupo Televisa	$58.42 billion	0.02	-$478.58 million	($0.81)	-3.35

IDT has higher earnings, but lower revenue than Grupo Televisa. Grupo Televisa is trading at a lower price-to-earnings ratio than IDT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IDT and Grupo Televisa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IDT	6.41%	24.36%	12.72%
Grupo Televisa	-13.93%	-7.65%	-3.55%

Institutional & Insider Ownership

59.3% of IDT shares are held by institutional investors. Comparatively, 55.8% of Grupo Televisa shares are held by institutional investors. 25.4% of IDT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

IDT beats Grupo Televisa on 11 of the 17 factors compared between the two stocks.

About IDT

IDT Corporation provides communications and payment services in the United States, the United Kingdom, and internationally. It operates through Fintech, National Retail Solutions, net2phone, and Traditional Communications segments. The company operates point of sale, a terminal-based platform which provides independent retailers store management software, electronic payment processing, and other ancillary merchant services; and provides marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services; and Leaf, a digital wallet services which operates money transfer businesses, as well as net2phone, a unified cloud communication services, which includes voice, texting, and chat services to enable smarter business conversations. In addition, the company provides IDT Digital Payments enables businesses, entrepreneurs, and developers to offer prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards, and prepaid utility payments through its Zendit platform; and BOSS Revolution Calling, which provides international long-distance voice services primarily to immigrant communities in the United States and Canada. Further, it offers IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a unique self-serve portal that offers SMBs the power to purchase DIDs, manage IPs, select termination quality, make payments, and other services. The company also provides Awards2Go, a B2B incentive, loyalty, and customer appreciation gift card solution; and IO Security which provides automation to remediation. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.

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.