Tribune Media (TRCO) versus Grupo Televisa (NYSE:TV) Critical Analysis

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

Profitability

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

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

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Grupo Televisa pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Tribune Media pays out -108.7% of its earnings in the form of a dividend. Grupo Televisa pays out 20.5% 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. Tribune Media is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Tribune Media	$1.92 billion	1.85	$415.94 million	($0.92)	-44.35
Grupo Televisa	$5.51 billion	11.90	$2.05 billion	$0.39	67.85

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.

Volatility and Risk

Tribune Media has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Insider & Institutional Ownership

61.0% 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Tribune Media and Grupo Televisa, as reported by MarketBeat.

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

Tribune Media presently has a consensus price target of $44.50, indicating a potential upside of 9.07%. Grupo Televisa has a consensus price target of $26.00, indicating a potential downside of 1.74%. Given Tribune Media’s higher possible upside, research analysts clearly believe Tribune Media is more favorable than Grupo Televisa.

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.