E. W. Scripps (NYSE: SSP) and Cable One (NYSE:CABO) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
This table compares E. W. Scripps and Cable One’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|E. W. Scripps||-1.44%||1.51%||0.79%|
E. W. Scripps has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Cable One has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.
Institutional and Insider Ownership
77.0% of E. W. Scripps shares are owned by institutional investors. Comparatively, 76.1% of Cable One shares are owned by institutional investors. 4.2% of E. W. Scripps shares are owned by insiders. Comparatively, 1.3% of Cable One shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares E. W. Scripps and Cable One’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|E. W. Scripps||$864.83 million||1.12||-$13.10 million||($0.15)||-79.27|
|Cable One||$960.03 million||4.04||$234.02 million||$41.14||16.46|
Cable One has higher revenue and earnings than E. W. Scripps. E. W. Scripps is trading at a lower price-to-earnings ratio than Cable One, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for E. W. Scripps and Cable One, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|E. W. Scripps||0||2||2||0||2.50|
E. W. Scripps presently has a consensus target price of $19.67, suggesting a potential upside of 65.41%. Cable One has a consensus target price of $790.33, suggesting a potential upside of 16.71%. Given E. W. Scripps’ stronger consensus rating and higher possible upside, research analysts plainly believe E. W. Scripps is more favorable than Cable One.
E. W. Scripps pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Cable One pays an annual dividend of $7.00 per share and has a dividend yield of 1.0%. E. W. Scripps pays out -133.3% of its earnings in the form of a dividend. Cable One pays out 17.0% 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. Cable One has increased its dividend for 2 consecutive years. E. W. Scripps is clearly the better dividend stock, given its higher yield and lower payout ratio.
Cable One beats E. W. Scripps on 9 of the 16 factors compared between the two stocks.
About E. W. Scripps
The E. W. Scripps Company is a media enterprise with interests in television and radio broadcasting, as well as local and national digital media brands. The Company’s segments include television, radio, digital, and syndication and other. As of December 31, 2016, the Television segment included approximately 15 American Broadcasting Company (ABC) affiliates, five National Broadcasting Company (NBC) affiliates, two FOX affiliates, two Columbia Broadcasting System (CBS) affiliates and four non big-four affiliated stations. As of December 31, 2016, the radio segment owned 34 radio stations in eight markets. As of December 31, 2016, it operated 28 frequency modulation (FM) stations and six Amplitude Modulation (AM) stations. The digital segment includes the digital operations of its local television and radio businesses. Its Syndication and other segment primarily includes the syndication of news features and comics and other features for the newspaper industry.
About Cable One
Cable One, Inc. is a provider of data, video and voice services. The Company offers products, including Residential Video Services, Residential Data Services, Residential Voice Services, Business Services and Advertising. As of May 1, 2017, the Company provided data, video and voice services in 21 Western, Midwestern and Southern states. As of December 31, 2016, the Company provided these broadband services to residential and business customers in more than 35 cable systems covering over 400 cities and towns. The Company provides these broadband services to residential and business customers in approximately 40 cable systems covering over 400 cities and towns. The markets it serves are non-metropolitan, secondary markets, with its customers located in five states: Arizona, Idaho, Mississippi, Oklahoma and Texas. The Company offers a range of residential video services, generally ranging from a basic video service to digital service with access to hundreds of channels.
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