Head-To-Head Review: Videocon d2h Limited (VDTH) & Cable One (CABO)

Videocon d2h Limited (NASDAQ: VDTH) and Cable One (NYSE:CABO) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Risk and Volatility

Videocon d2h Limited has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Cable One has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Valuation and Earnings

This table compares Videocon d2h Limited and Cable One’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Videocon d2h Limited $479.72 million 2.07 $158.98 million $0.04 235.81
Cable One $860.73 million 4.95 $372.61 million $18.63 39.94

Cable One has higher revenue and earnings than Videocon d2h Limited. Cable One is trading at a lower price-to-earnings ratio than Videocon d2h Limited, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Videocon d2h Limited and Cable One, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Videocon d2h Limited 0 0 0 0 N/A
Cable One 1 0 2 0 2.33

Cable One has a consensus target price of $646.00, indicating a potential downside of 13.18%. Given Cable One’s higher probable upside, analysts clearly believe Cable One is more favorable than Videocon d2h Limited.

Dividends

Cable One pays an annual dividend of $7.00 per share and has a dividend yield of 0.9%. Videocon d2h Limited does not pay a dividend. Cable One pays out 37.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

27.8% of Videocon d2h Limited shares are held by institutional investors. Comparatively, 70.4% of Cable One shares are held by institutional investors. 1.3% of Cable One shares are held by company 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.

Profitability

This table compares Videocon d2h Limited and Cable One’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Videocon d2h Limited 0.93% 3.78% 0.67%
Cable One 12.44% 22.83% 6.77%

Summary

Cable One beats Videocon d2h Limited on 12 of the 15 factors compared between the two stocks.

Videocon d2h Limited Company Profile

Videocon d2h Limited is engaged in the provision of direct to home (DTH) subscription television services to subscribers in India. The Company operates under the Videocon d2h brand. The Company is engaged in the transmission of programming to subscribers through satellite broadcasting. Its subscribers have access to over 550 national and international channels and services, including approximately 45 high definition (HD) channels and services, and over 42 audio and video services through its Music Channel Services through several subscription packages, as well as the option of choosing add-ons and a la carte channels and receiving certain discounts through long-term recharge offers. Its subscription packages include Flexi Pack, Super Gold Pack, Gold Maxi pack, Gold Kids, New Gold Sports Pack, Gold Sports Kids, New Diamond Pack, Platinum Pack and Platinum HD Pack. It offers value-added services, such as movie channel services, active music channel services, tickers and smart services.

Cable One Company Profile

Cable One, Inc. is a provider of data, video and voice services. The Company offers products, including Residential Video Services, Residential Data Services, Residential Voice Services, Business Services and Advertising. As of May 1, 2017, the Company provided data, video and voice services in 21 Western, Midwestern and Southern states. As of December 31, 2016, the Company provided these broadband services to residential and business customers in more than 35 cable systems covering over 400 cities and towns. The Company provides these broadband services to residential and business customers in approximately 40 cable systems covering over 400 cities and towns. The markets it serves are non-metropolitan, secondary markets, with its customers located in five states: Arizona, Idaho, Mississippi, Oklahoma and Texas. The Company offers a range of residential video services, generally ranging from a basic video service to digital service with access to hundreds of channels.

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