Optimum Communications (NYSE:OPTU – Get Free Report) and Grupo Televisa (NYSE:TV – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
54.8% of Optimum Communications shares are owned by institutional investors. Comparatively, 55.8% of Grupo Televisa shares are owned by institutional investors. 43.4% of Optimum Communications shares are owned 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 Optimum Communications and Grupo Televisa’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Optimum Communications | -58.15% | N/A | -0.70% |
| Grupo Televisa | -15.28% | -8.33% | -3.87% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Optimum Communications | 4 | 5 | 0 | 0 | 1.56 |
| Grupo Televisa | 2 | 3 | 1 | 0 | 1.83 |
Optimum Communications presently has a consensus target price of $0.92, indicating a potential downside of 5.17%. Grupo Televisa has a consensus target price of $6.55, indicating a potential upside of 173.49%. Given Grupo Televisa’s stronger consensus rating and higher possible upside, analysts plainly believe Grupo Televisa is more favorable than Optimum Communications.
Earnings and Valuation
This table compares Optimum Communications and Grupo Televisa”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Optimum Communications | $8.59 billion | 0.03 | -$1.87 billion | ($10.39) | -0.09 |
| Grupo Televisa | $3.07 billion | 0.41 | -$478.58 million | ($0.91) | -2.63 |
Grupo Televisa has lower revenue, but higher earnings than Optimum Communications. Grupo Televisa is trading at a lower price-to-earnings ratio than Optimum Communications, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Optimum Communications has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.
Summary
Grupo Televisa beats Optimum Communications on 9 of the 14 factors compared between the two stocks.
About Optimum Communications
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.
About Grupo Televisa
Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.
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