Comparing Tribune Media (TRCO) & Comcast (CMCSA)

Tribune Media (NYSE: TRCO) and Comcast (NASDAQ:CMCSA) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Valuation and Earnings

This table compares Tribune Media and Comcast’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tribune Media $1.95 billion 1.90 $14.24 million ($0.69) -61.58
Comcast $84.53 billion 2.17 $22.71 billion $2.10 18.80

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

Risk & Volatility

Tribune Media has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Comcast has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Comcast pays an annual dividend of $0.63 per share and has a dividend yield of 1.6%. Tribune Media pays out -144.9% of its earnings in the form of a dividend. Comcast pays out 30.0% 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. Tribune Media is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Tribune Media and Comcast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tribune Media -6.12% 4.11% 1.50%
Comcast 26.87% 16.47% 5.34%

Analyst Recommendations

This is a breakdown of recent recommendations for Tribune Media and Comcast, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tribune Media 1 4 1 0 2.00
Comcast 0 3 23 0 2.88

Tribune Media presently has a consensus target price of $43.88, suggesting a potential upside of 3.26%. Comcast has a consensus target price of $47.74, suggesting a potential upside of 20.95%. Given Comcast’s stronger consensus rating and higher possible upside, analysts plainly believe Comcast is more favorable than Tribune Media.

Insider and Institutional Ownership

91.6% of Tribune Media shares are held by institutional investors. Comparatively, 82.3% of Comcast shares are held by institutional investors. 0.6% of Tribune Media shares are held by company insiders. Comparatively, 1.3% of Comcast shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Comcast beats Tribune Media on 12 of the 16 factors compared between the two stocks.

Tribune Media Company Profile

Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

Comcast Company Profile

Comcast Corporation is a media and technology company. The Company has two primary businesses: Comcast Cable and NBCUniversal. Its Comcast Cable business operates in the Cable Communications segment. Its NBCUniversal business operates in four business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Its Cable Communications segment consists of the operations of Comcast Cable, which provides video, high-speed Internet and voice services to residential customers under the XFINITY brand. Its Cable Networks segment consists of a portfolio of national cable networks. Its Broadcast Television segment operates the NBC and Telemundo broadcast networks. Its Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment across the world, and it also develops, produces and licenses live stage plays. Its Theme Parks segment consists primarily of its Universal theme parks in Orlando, Florida and Hollywood, California.

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