Critical Review: Prosiebensat.1 Media (OTCMKTS:PBSFY) vs. Comcast (NASDAQ:CMCSA)

Prosiebensat.1 Media (OTCMKTS:PBSFY) and Comcast (NASDAQ:CMCSA) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

84.3% of Comcast shares are owned by institutional investors. 1.3% of Comcast shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Prosiebensat.1 Media pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Comcast pays an annual dividend of $1.32 per share and has a dividend yield of 3.9%. Prosiebensat.1 Media pays out -50.0% of its earnings in the form of a dividend. Comcast pays out 32.4% 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. Comcast has increased its dividend for 18 consecutive years. Comcast is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Prosiebensat.1 Media has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Comcast has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Prosiebensat.1 Media and Comcast, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosiebensat.1 Media	0	1	0	1	3.00
Comcast	3	11	12	1	2.41

Comcast has a consensus target price of $41.13, suggesting a potential upside of 22.13%. Given Comcast’s higher possible upside, analysts clearly believe Comcast is more favorable than Prosiebensat.1 Media.

Profitability

This table compares Prosiebensat.1 Media and Comcast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prosiebensat.1 Media	-0.58%	13.81%	3.70%
Comcast	12.72%	19.70%	6.34%

Earnings & Valuation

This table compares Prosiebensat.1 Media and Comcast”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prosiebensat.1 Media	$4.24 billion	0.44	$55.19 million	($0.02)	-101.88
Comcast	$123.73 billion	1.02	$16.19 billion	$4.07	8.28

Comcast has higher revenue and earnings than Prosiebensat.1 Media. Prosiebensat.1 Media is trading at a lower price-to-earnings ratio than Comcast, indicating that it is currently the more affordable of the two stocks.

Summary

Comcast beats Prosiebensat.1 Media on 14 of the 17 factors compared between the two stocks.

About Prosiebensat.1 Media

ProSiebenSat.1 Media SE operates as a media company in Germany, Austria, Switzerland, the United States, and internationally. It operates through three segments: Entertainment, Dating & Video, and Commerce & Ventures. The Entertainment segment operates free TV stations and digital platforms, such as SAT.1, ProSieben, Kabel Eins, sixx, SAT.1 Gold, ProSieben MAXX, and Kabel Eins Doku, as well as PULS4, PULS24, ATV I, ATV II, and PLUS 8. This segment is involved in operating commercial websites; production and distribution programming portfolio, including entertainment, reality, and factual formats, as well as TV series, TV films, and digital content; and operates Studio71 which creates and sells digital offerings for influencers. Its Dating & Video segment engages in online matchmaking services for online dating and entertainment under the Parship, ElitePartner, eHarmony, LOVOO help singles brand names. This segment provides video-based social entertainment applications, such as MeetMe, Skout, Tagged, and GROWLr content for users. The Commerce & Ventures segment engages in the consumer advice, experiences, and beauty and lifestyle businesses; and offers individual tailored support services for development of companies. This segment is involved in operating Marktguru and wetter.com. ProSiebenSat.1 Media SE was founded in 1984 and is headquartered in Unterföhring, Germany.

About Comcast

Comcast Corporation operates as a media and technology company worldwide. It operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments. The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising. The Business Services Connectivity segment offers connectivity services for small business locations, which include broadband, wireline voice, and wireless services, as well as solutions for medium-sized customers and larger enterprises; and small business connectivity services in the United Kingdom. The Media segment operates NBCUniversal's television and streaming business, including national and regional cable networks; the NBC and Telemundo broadcast networks and owned local broadcast television stations; and Peacock, a direct-to-consumer streaming services. It also operates international television networks comprising the Sky Sports networks, as well as other digital properties. The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations. The Theme Parks segment operates Universal theme parks in Orlando, Florida; Hollywood, California; Osaka, Japan; and Beijing, China. The company also offers a consolidated streaming platforms under the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.