Cable One (NYSE:CABO – Get Free Report) and USA Today (NYSE:TDAY – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Insider & Institutional Ownership
89.9% of Cable One shares are held by institutional investors. Comparatively, 76.7% of USA Today shares are held by institutional investors. 0.9% of Cable One shares are held by company insiders. Comparatively, 4.4% of USA Today shares are held 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.
Risk & Volatility
Cable One has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, USA Today has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Cable One | -72.83% | -3.97% | -0.86% |
| USA Today | -1.81% | -21.13% | -1.85% |
Analyst Ratings
This is a summary of recent ratings and price targets for Cable One and USA Today, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cable One | 3 | 3 | 0 | 0 | 1.50 |
| USA Today | 1 | 0 | 3 | 0 | 2.50 |
Cable One presently has a consensus price target of $85.40, suggesting a potential upside of 204.02%. USA Today has a consensus price target of $9.03, suggesting a potential upside of 34.90%. Given Cable One’s higher probable upside, research analysts plainly believe Cable One is more favorable than USA Today.
Earnings and Valuation
This table compares Cable One and USA Today”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cable One | $1.50 billion | 0.11 | -$356.46 million | ($185.06) | -0.15 |
| USA Today | $2.23 billion | 0.44 | $1.75 million | ($0.30) | -22.30 |
USA Today has higher revenue and earnings than Cable One. USA Today is trading at a lower price-to-earnings ratio than Cable One, indicating that it is currently the more affordable of the two stocks.
Summary
USA Today beats Cable One on 9 of the 14 factors compared between the two stocks.
About Cable One
Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides various residential video services from basic video service to digital services with access to hundreds of channels; and provides a cloud-based DVR feature that does not require the use of a set-top boxes. In addition, the company offers Sparklight TV, an IPTV video service that allows customers to stream its video channels from the cloud through an app on supported devices, such as the Amazon Firestick, Apple TV, and Android-based smart televisions. Further, it provides data, voice, and video products to business customers, including small to mid-markets, enterprises, and wholesale and carrier customers. The company serves residential and business customers, comprising data, video, and voice services. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.
About USA Today
Gannett Co Inc. invests in, owns, and operates local media assets in the United States. The company’s principal products include 125 daily newspapers with total paid circulation of approximately 1.4 million; 314 weekly newspapers with total paid circulation of approximately 315,000 and total free circulation of approximately 1.9 million; 124 shoppers with total circulation of approximately 3.0 million; and 538 locally-focused Websites, including Internet and mobile devices with approximately 224 million page views per month. Its principal products also comprise 2 yellow page directories with a total distribution of approximately 230,000 that cover a population of approximately 411,000 people; 68 business publications; and Propel digital marketing and business services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it provides print and online products that offer local market news and information on various topics comprising local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports, as well as print and digital advertising products, as well as commercial printing and regional business-oriented publications services. The company reaches approximately 20 million people per week; and serves approximately 220,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.
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