Contrasting E. W. Scripps (SSP) & Grupo Televisa SAB (TV)

E. W. Scripps (NYSE: SSP) and Grupo Televisa SAB (NYSE:TV) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

E. W. Scripps pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Grupo Televisa SAB pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. E. W. Scripps pays out -51.3% of its earnings in the form of a dividend. Grupo Televisa SAB pays out 19.5% 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. E. W. Scripps is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares E. W. Scripps and Grupo Televisa SAB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
E. W. Scripps -3.93% 0.89% 0.43%
Grupo Televisa SAB 4.08% 3.86% 1.34%

Risk and Volatility

E. W. Scripps has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, Grupo Televisa SAB has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

77.7% of E. W. Scripps shares are held by institutional investors. Comparatively, 54.5% of Grupo Televisa SAB shares are held by institutional investors. 4.2% of E. W. Scripps shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares E. W. Scripps and Grupo Televisa SAB’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
E. W. Scripps $864.83 million 1.30 -$13.10 million ($0.39) -35.26
Grupo Televisa SAB $5.00 billion 2.05 $239.79 million $0.41 43.66

Grupo Televisa SAB has higher revenue and earnings than E. W. Scripps. E. W. Scripps is trading at a lower price-to-earnings ratio than Grupo Televisa SAB, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for E. W. Scripps and Grupo Televisa SAB, 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
Grupo Televisa SAB 1 4 3 0 2.25

E. W. Scripps presently has a consensus target price of $19.50, suggesting a potential upside of 41.82%. Grupo Televisa SAB has a consensus target price of $26.00, suggesting a potential upside of 45.25%. Given Grupo Televisa SAB’s higher probable upside, analysts clearly believe Grupo Televisa SAB is more favorable than E. W. Scripps.

Summary

Grupo Televisa SAB beats E. W. Scripps on 10 of the 16 factors compared between the two stocks.

E. W. Scripps Company Profile

The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local and national media brands. Its Local Media segment operates broadcast television stations, which produce news, information, and entertainment content, as well as its related digital operations. This segment also runs network programming, syndicated programming, and original programming. The company's National Media segment offers content services through apps on Internet-connected devices, such as computers, gaming consoles, set-top boxes, smartphones, smart TVs, and tablets. It operates Katz, which broadcasts content through over-the-air on local broadcasters' digital sub-channels, and cable and satellite; and Midroll that creates original podcast, a digital audio recording of themed series, as well as Stitcher, a mobile application where consumers can stream the latest news, sports, talk, and entertainment on demand. This segment also operates Newsy, a national news network, which provides politics, entertainment, science, and technology news. The company also operates Cracked, a multi-platform humor and satire brand, which informs and entertains audiences with a Website, social media, and podcast; and Scripps National Spelling Bee, an investigative reporting newsroom in Washington, D.C. The company was formerly known as Scripps Howard, Inc. The E.W. Scripps Company was founded in 1878 and is headquartered in Cincinnati, Ohio.

Grupo Televisa SAB Company Profile

Grupo Televisa, S.A.B. operates as a media company in the Spanish-speaking world. The company operates through four segments: Content, Sky, Cable, and Other Businesses. The Content segment is involved in the production of television programming and broadcasting of Channels 2, 4, 5, and 9; the sale of advertising time on programs; and the production of television programming and broadcasting for local television stations in Mexico and the United States, as well as Internet business. It also provides programming services for cable and pay-per-view television companies in Mexico, other countries in Latin America, the United States, and Europe; and licenses and syndicates television programming. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Cable segment operates cable multiple system and telecommunication facilities. It provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone services, as well as local and national advertising sales. This segment also offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Other Businesses segment operates in sports and show business promotion, soccer, feature film production and distribution, gaming, radio, publishing, and publishing distribution businesses. Grupo Televisa, S.A.B. was founded in 1990 and is based in Mexico City, Mexico.

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