Starz Acquisition (NASDAQ: LCAPA) and Comcast (NASDAQ:CMCSA) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Dividends

Comcast pays an annual dividend of $0.63 per share and has a dividend yield of 1.7%. Starz Acquisition does not pay a dividend. Comcast pays out 31.7% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Starz Acquisition and Comcast’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Starz Acquisition N/A N/A N/A N/A N/A
Comcast $83.97 billion 2.10 $27.79 billion $1.99 18.87

Comcast has higher revenue and earnings than Starz Acquisition.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Starz Acquisition and Comcast, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starz Acquisition 0 0 0 0 N/A
Comcast 0 1 23 0 2.96

Comcast has a consensus price target of $45.83, indicating a potential upside of 22.35%. Given Comcast’s higher probable upside, analysts plainly believe Comcast is more favorable than Starz Acquisition.

Insider & Institutional Ownership

81.9% of Comcast shares are held by institutional investors. 1.3% of Comcast shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Starz Acquisition and Comcast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starz Acquisition -68.21% -14.75% -6.41%
Comcast 11.98% 18.32% 5.56%

Summary

Comcast beats Starz Acquisition on 9 of the 10 factors compared between the two stocks.

Starz Acquisition Company Profile

Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.

Comcast Company Profile

Comcast Corporation is a media and technology company. The Company has two primary businesses: Comcast Cable and NBCUniversal. Its Comcast Cable business operates in the Cable Communications segment. Its NBCUniversal business operates in four business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Its Cable Communications segment consists of the operations of Comcast Cable, which provides video, high-speed Internet and voice services to residential customers under the XFINITY brand. Its Cable Networks segment consists of a portfolio of national cable networks. Its Broadcast Television segment operates the NBC and Telemundo broadcast networks. Its Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment across the world, and it also develops, produces and licenses live stage plays. Its Theme Parks segment consists primarily of its Universal theme parks in Orlando, Florida and Hollywood, California.

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