Head-To-Head Analysis: Cablevision Systems (NYSE:CVC) and Time Warner Cable (TWC)

Time Warner Cable (NYSE: TWC) and Cablevision Systems (NYSE:CVC) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares Time Warner Cable and Cablevision Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Time Warner Cable 7.98% 21.59% 4.00%
Cablevision Systems 5.75% N/A 5.59%

Dividends

Time Warner Cable pays an annual dividend of $3.00 per share. Cablevision Systems pays an annual dividend of $0.15 per share and has a dividend yield of 0.4%. Time Warner Cable pays out 45.9% of its earnings in the form of a dividend. Cablevision Systems pays out 18.3% 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. Cablevision Systems has raised its dividend for 8 consecutive years. Cablevision Systems is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations for Time Warner Cable and Cablevision Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Time Warner Cable 0 0 0 0 N/A
Cablevision Systems 0 0 0 0 N/A

Valuation and Earnings

This table compares Time Warner Cable and Cablevision Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Time Warner Cable N/A N/A N/A $6.54 N/A
Cablevision Systems N/A N/A N/A $0.82 42.52

Time Warner Cable is trading at a lower price-to-earnings ratio than Cablevision Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Cablevision Systems beats Time Warner Cable on 5 of the 8 factors compared between the two stocks.

Time Warner Cable Company Profile

Time Warner Cable Inc. (TWC) is a provider of video, high-speed data and voice services in the United States with clustered cable systems located in approximately five geographic areas, including New York State, the Carolinas, the Midwest, Southern California and Texas. The Company operates through three segments: Residential Services, Business Services and Other Operations. The Company’s residential services segment includes security and home management services. Its business services segment includes networking and transport services, including cell tower backhaul services, and enterprise-class, cloud-enabled hosting, managed applications and services. The Company serves approximately 15.9 million residential and business services customers. The Company also sells video and online advertising inventory to various local, regional and national customers.

Cablevision Systems Company Profile

Cablevision Systems Corporation (Cablevision), through its subsidiary, CSC Holdings, LLC (CSC Holdings), operates cable operations business in the United States. The Company operates in three segments: Cable, Lightpath and Other. The Company’s Cable segment offers Cable television service, which delivers multiple channels of video programming to subscribers who pay a monthly fee for the services they receive. The Company operates Lightpath segmeny, through its subsidiary, Cablevision Lightpath, Inc. (Lightpath), which provides Ethernet-based data, Internet, voice and video transport and managed services to the business market in the New York metropolitan area. Lightpath also provides managed information technology services to businesses, including hosted voice services, managed wireless fidelity, managed desktop and server backup, and managed collaboration services. The Other segment operations consist of the operations of Newsday, News 12 Networks and Cablevision Media Sales.

Receive News & Ratings for Time Warner Cable Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Time Warner Cable and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply