Comparing Discovery Communications (DISCA) & Its Rivals

Discovery Communications (NASDAQ: DISCA) is one of 15 public companies in the “Television Broadcasting” industry, but how does it compare to its rivals? We will compare Discovery Communications to similar businesses based on the strength of its analyst recommendations, risk, dividends, institutional ownership, profitability, valuation and earnings.

Profitability

This table compares Discovery Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Discovery Communications 16.63% 22.24% 6.83%
Discovery Communications Competitors 10.94% 94.09% 5.95%

Earnings and Valuation

This table compares Discovery Communications and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Discovery Communications $6.50 billion $1.19 billion 9.31
Discovery Communications Competitors $3.48 billion $571.33 million 42.99

Discovery Communications has higher revenue and earnings than its rivals. Discovery Communications is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

46.2% of Discovery Communications shares are held by institutional investors. Comparatively, 68.9% of shares of all “Television Broadcasting” companies are held by institutional investors. 6.8% of Discovery Communications shares are held by company insiders. Comparatively, 8.2% of shares of all “Television Broadcasting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Discovery Communications and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 3 11 3 0 2.00
Discovery Communications Competitors 85 548 499 4 2.37

Discovery Communications presently has a consensus target price of $24.36, suggesting a potential upside of 36.91%. As a group, “Television Broadcasting” companies have a potential upside of 19.92%. Given Discovery Communications’ higher possible upside, equities analysts clearly believe Discovery Communications is more favorable than its rivals.

Volatility and Risk

Discovery Communications has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Discovery Communications’ rivals have a beta of 1.58, indicating that their average share price is 58% more volatile than the S&P 500.

Summary

Discovery Communications rivals beat Discovery Communications on 8 of the 13 factors compared.

About Discovery Communications

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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