Contrasting Discovery Communications (DISCA) and Qurate Retail Inc Series B (QRTEB)

Discovery Communications (NASDAQ:DISCA) and Qurate Retail Inc Series B (NASDAQ:QRTEB) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

41.8% of Discovery Communications shares are held by institutional investors. Comparatively, 0.0% of Qurate Retail Inc Series B shares are held by institutional investors. 6.7% of Discovery Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Discovery Communications and Qurate Retail Inc Series B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Discovery Communications -8.52% 17.05% 4.64%
Qurate Retail Inc Series B 9.88% 22.24% 7.84%

Valuation & Earnings

This table compares Discovery Communications and Qurate Retail Inc Series B’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Discovery Communications $6.87 billion 2.13 -$337.00 million $2.24 12.49
Qurate Retail Inc Series B $10.38 billion 0.93 $2.44 billion N/A N/A

Qurate Retail Inc Series B has higher revenue and earnings than Discovery Communications.

Volatility & Risk

Discovery Communications has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Qurate Retail Inc Series B has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Discovery Communications and Qurate Retail Inc Series B, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 1 3 12 0 2.69
Qurate Retail Inc Series B 0 0 0 0 N/A

Discovery Communications presently has a consensus price target of $32.72, indicating a potential upside of 16.94%. Given Discovery Communications’ higher probable upside, equities research analysts plainly believe Discovery Communications is more favorable than Qurate Retail Inc Series B.

Summary

Discovery Communications beats Qurate Retail Inc Series B on 7 of the 12 factors compared between the two stocks.

Discovery Communications Company Profile

Discovery, Inc. operates as a media company worldwide. The company operates through U.S. Networks, International Networks, and Education and Other segments. It owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, Velocity, Discovery Family Channel, Destination America, American Heroes Channel, Discovery Life, The Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks. The company's content spans genres, including survival, exploration, sports, lifestyle, general entertainment, heroes, adventure, crime and investigation, health, and kids. It also develops and sells curriculum-based education products and services, such as an online suite of curriculum-based video on demand (VOD) tools, professional development services, and digital textbooks, as well as student assessments; and publishes hard copy curriculum-based content for K-12 schools. In addition, the company operates production studios that develop content; and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, Websites, digital distribution arrangements, and content licensing agreements, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, VOD, and broadband channels. As of December 31, 2017, the company operated approximately 400 distribution feeds in 40 languages internationally. Discovery, Inc. was founded in 1985 and is headquartered in Silver Spring, Maryland.

Qurate Retail Inc Series B Company Profile

Qurate Retail, Inc., through its subsidiaries, engages in the video and online commerce industries in North America, Europe, and Asia. It markets and sells various consumer products primarily through live televised shopping programs, Websites, and mobile applications to 374 million households worldwide each day. The company also operates as an online retailer offering women's, children's, and men's apparel; and other products, such as home, beauty, and personalized products through its desktop and mobile Websites, and mobile applications. It also operates evite.com, an online invitation and social event planning service on the Web. The company was formerly known as Liberty Interactive Corporation and changed its name to Qurate Retail, Inc. in April 2018. Qurate Retail, Inc. was founded in 1994 and is headquartered in Englewood, Colorado.

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