Gray Television (NYSE: GTN) and Virgin Media (NASDAQ:VMED) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Gray Television and Virgin Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gray Television 14.91% 15.53% 2.91%
Virgin Media N/A N/A N/A

Earnings and Valuation

This table compares Gray Television and Virgin Media’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gray Television $812.47 million 1.86 $62.27 million $1.81 9.31
Virgin Media N/A N/A N/A $15.59 N/A

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

Institutional & Insider Ownership

67.4% of Gray Television shares are held by institutional investors. 12.0% of Gray Television shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings for Gray Television and Virgin Media, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gray Television 0 0 6 0 3.00
Virgin Media 0 0 0 0 N/A

Gray Television presently has a consensus target price of $18.67, indicating a potential upside of 10.78%.

Summary

Gray Television beats Virgin Media on 7 of the 8 factors compared between the two stocks.

About Gray Television

Gray Television, Inc. is a television broadcast company. The Company owns and operates television stations and digital assets in various markets across the United States. As of February 21, 2017, the Company owned and/or operated television stations in 54 television markets broadcasting over 200 separate programming streams, including 37 affiliates of the CBS Network (CBS), 29 affiliates of the NBC Network (NBC), 20 affiliates of the ABC Network (ABC) and 15 affiliates of the FOX Network (FOX). In addition to a primary broadcast channel, each of its stations can also broadcast additional secondary digital channels within a market by utilizing the same bandwidth, but with different programming from the primary channel. The Company also broadcasts local news/weather channels in certain of its existing markets. Along with affiliations with ABC, CBS and FOX, the Company’s secondary channels are affiliated with various smaller networks and program services.

About Virgin Media

Virgin Media Inc. (Virgin Media)is engaged in entertainment and communications business. The Company has two segments: Consumer and Business. The Company is a provider of broadband Internet, television, mobile telephony and fixed line telephony services that offer a range of entertainment and communications services to residential and commercial customers throughout the United Kingdom. It is a provider of residential broadband Internet, pay television and fixed line telephony services by number of customers. As of December 31, 2011, the Company provided services to approximately 4.8 million residential cable customers on its network. The Company is also a mobile virtual network operators by number of customers, providing mobile telephone service to 1.5 million prepay mobile customers and approximately 1.5 million contract mobile customers over third party networks. In June 2013, Liberty Global Inc announced that it has completed the acquisition of Virgin Media Inc (Virgin Media).

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