Entravision Communications Corporation (NYSE: EVC) and Discovery Communications (NASDAQ:DISCB) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Entravision Communications Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 3.8%. Discovery Communications does not pay a dividend. Entravision Communications Corporation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Entravision Communications Corporation has increased its dividend for 3 consecutive years.
This table compares Entravision Communications Corporation and Discovery Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Entravision Communications Corporation||7.03%||10.05%||3.50%|
This is a breakdown of recent ratings for Entravision Communications Corporation and Discovery Communications, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Entravision Communications Corporation||0||2||1||0||2.33|
Entravision Communications Corporation currently has a consensus price target of $7.00, suggesting a potential upside of 32.08%. Given Entravision Communications Corporation’s higher possible upside, analysts clearly believe Entravision Communications Corporation is more favorable than Discovery Communications.
Volatility and Risk
Entravision Communications Corporation has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Discovery Communications has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.
Institutional & Insider Ownership
58.3% of Entravision Communications Corporation shares are owned by institutional investors. 20.7% of Entravision Communications Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Entravision Communications Corporation and Discovery Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Entravision Communications Corporation||$263.59 million||1.82||$61.52 million||$0.21||25.24|
|Discovery Communications||$6.59 billion||1.88||$2.48 billion||$1.89||11.51|
Discovery Communications has higher revenue and earnings than Entravision Communications Corporation. Discovery Communications is trading at a lower price-to-earnings ratio than Entravision Communications Corporation, indicating that it is currently the more affordable of the two stocks.
Discovery Communications beats Entravision Communications Corporation on 9 of the 16 factors compared between the two stocks.
Entravision Communications Corporation Company Profile
Entravision Communications Corporation is a media company. The Company reaches and engages Hispanics in the United States and certain border markets of Mexico across media channels and advertising platforms. The Company operates through three segments: television broadcasting, radio broadcasting and digital media. As of December 31, 2016, the Company owned and operated 54 television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, District of Columbia. It owns and operates Spanish-language radio stations in the United States. As of December 31, 2016, its radio stations consisted of 38 frequency modulation (FM) and 11 amplitude modulation (AM) stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The digital media segment provides digital advertising solutions that allow advertisers to reach online Hispanic audiences throughout the United States and Mexico.
Discovery Communications Company Profile
Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company’s portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.
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