Cable One (NYSE:CABO – Get Free Report) and News (NASDAQ:NWSA – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Institutional and Insider Ownership
89.9% of Cable One shares are owned by institutional investors. Comparatively, 67.0% of News shares are owned by institutional investors. 0.9% of Cable One shares are owned by company insiders. Comparatively, 11.6% of News shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Cable One and News, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cable One | 2 | 3 | 0 | 0 | 1.60 |
| News | 0 | 0 | 5 | 1 | 3.17 |
Cable One presently has a consensus target price of $63.75, suggesting a potential upside of 1,949.84%. News has a consensus target price of $36.50, suggesting a potential upside of 36.52%. Given Cable One’s higher probable upside, research analysts plainly believe Cable One is more favorable than News.
Profitability
This table compares Cable One and News’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cable One | -112.20% | -22.87% | -3.53% |
| News | 6.76% | 7.42% | 4.45% |
Volatility & Risk
Cable One has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, News has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Earnings and Valuation
This table compares Cable One and News”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cable One | $1.50 billion | 0.01 | -$356.46 million | ($275.24) | -0.01 |
| News | $9.03 billion | 1.60 | $573.00 million | $1.12 | 23.87 |
News has higher revenue and earnings than Cable One. Cable One is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Summary
News beats Cable One on 13 of the 15 factors compared between the two stocks.
About Cable One
Cable One, Inc. is a broadband communications provider serving residential and business customers, primarily in smaller communities across the United States. It markets many of its residential services under the Sparklight name. The company provides high-speed internet, cable television and voice services to households. Its business offerings include internet connectivity, data transport, voice and other communications solutions for organizations of varying sizes. Cable One traces its history to a cable television business established in 1986 and became an independent public company after its separation from Graham Holdings in 1997.
About News
News Corporation is a global media and information services company. Its businesses include Dow Jones, which provides financial news and data through outlets such as The Wall Street Journal; HarperCollins, a book publisher; and News Corp’s news media operations, which publish newspapers and digital news services. The company also operates digital real estate businesses, including Realtor.com in the United States and REA Group in Australia. Its brands and services reach audiences and customers across the Americas, Europe, Australia and other international markets.
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