Tribune Media Services (NYSE: TRCO) and Directv (NASDAQ:DTV) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.
Earnings and Valuation
This table compares Tribune Media Services and Directv’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tribune Media Services||$1.85 billion||1.93||$194.11 million||$2.17||18.80|
Tribune Media Services pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Directv does not pay a dividend. Tribune Media Services pays out 46.1% of its earnings in the form of a dividend.
Insider & Institutional Ownership
87.9% of Tribune Media Services shares are held by institutional investors. 0.6% of Tribune Media Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Tribune Media Services and Directv’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tribune Media Services||10.50%||4.13%||1.52%|
This is a summary of current ratings and recommmendations for Tribune Media Services and Directv, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tribune Media Services||1||4||1||0||2.00|
Tribune Media Services presently has a consensus price target of $43.88, indicating a potential upside of 7.56%. Given Tribune Media Services’ higher possible upside, analysts clearly believe Tribune Media Services is more favorable than Directv.
Tribune Media Services beats Directv on 9 of the 12 factors compared between the two stocks.
About Tribune Media Services
Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, MY television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV digital multicast networks; a production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.
DIRECTV is a provider of digital television entertainment in the United States and Latin America. The Company operates two direct-to-home (DTH) business units: DIRECTV U.S. and DIRECTV Latin America, which are engaged in acquiring, promoting, selling and distributing digital entertainment programming primarily through satellite to residential and commercial subscribers. In addition, the Company owns and operates two regional sports networks, and also owns non-controlling interests in two others, ROOT SPORTS Northwest and ROOT SPORTS Houston. The Company’s reportable segments include DIRECTV U.S., Sky Brasil and PanAmericana, which are engaged in acquiring, promoting, selling and distributing digital entertainment programming, and the Sports Networks, Eliminations and Other segment, which includes its regional sports networks that provide programming to local professional sports teams and college sporting events and locally produce their own programming.
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