Head-To-Head Survey: Grupo Televisa (NYSE:TV) versus Tribune Media (TRCO)

Grupo Televisa (NYSE: TV) and Tribune Media (NYSE:TRCO) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Risk & Volatility

Grupo Televisa has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Tribune Media has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Grupo Televisa 4.69% 4.62% 1.50%
Tribune Media -4.09% 4.40% 1.65%

Institutional and Insider Ownership

61.3% of Grupo Televisa shares are owned by institutional investors. 0.6% of Tribune Media shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Grupo Televisa and Tribune Media’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Grupo Televisa $5.42 billion 14.31 $2.02 billion $0.39 67.10
Tribune Media $1.92 billion 1.87 $415.94 million ($0.92) -45.00

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

Analyst Recommendations

This is a summary of recent recommendations for Grupo Televisa and Tribune Media, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grupo Televisa 0 3 2 0 2.40
Tribune Media 1 3 1 0 2.00

Grupo Televisa currently has a consensus target price of $26.00, suggesting a potential downside of 0.65%. Tribune Media has a consensus target price of $44.50, suggesting a potential upside of 7.49%. Given Tribune Media’s higher possible upside, analysts plainly believe Tribune Media is more favorable than Grupo Televisa.

Dividends

Grupo Televisa pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Grupo Televisa pays out 20.5% of its earnings in the form of a dividend. Tribune Media pays out -108.7% 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.

Summary

Grupo Televisa beats Tribune Media on 10 of the 16 factors compared between the two stocks.

About Grupo Televisa

Grupo Televisa, S.A.B. is a media company in the international entertainment business. The Company operates in four business segments: Content, Sky, Telecommunications, and Other Businesses. It operates four broadcast channels in Mexico City and has affiliated stations throughout the country. It produces pay-television channels with national and international feeds, throughout Latin America, the United States, Canada, Europe and Asia Pacific. It exports its programs and formats to television networks around the world. It is also a Spanish-language magazine publisher. Its pay-television channels include three music, six movie, seven variety and entertainment channels and two sports channels. Its programs include telenovelas, newscasts, situation comedies, game shows, reality shows, children’s programs, comedy and variety programs, musical and cultural events, movies and educational programming. Its programming also includes broadcasts of special events and sports events in Mexico.

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