Sinclair Broadcast Group (NASDAQ: SBGI) and Global Eagle Entertainment (NASDAQ:ENT) are both broadcasting – nec companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Sinclair Broadcast Group and Global Eagle Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sinclair Broadcast Group 9.06% 24.41% 3.65%
Global Eagle Entertainment N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sinclair Broadcast Group and Global Eagle Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sinclair Broadcast Group 0 0 9 0 3.00
Global Eagle Entertainment 1 3 1 0 2.00

Sinclair Broadcast Group currently has a consensus price target of $46.89, indicating a potential upside of 56.04%. Global Eagle Entertainment has a consensus price target of $10.50, indicating a potential upside of 395.28%. Given Global Eagle Entertainment’s higher possible upside, analysts plainly believe Global Eagle Entertainment is more favorable than Sinclair Broadcast Group.

Institutional and Insider Ownership

81.2% of Sinclair Broadcast Group shares are held by institutional investors. Comparatively, 93.0% of Global Eagle Entertainment shares are held by institutional investors. 28.2% of Sinclair Broadcast Group shares are held by insiders. Comparatively, 3.9% of Global Eagle Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Sinclair Broadcast Group has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Global Eagle Entertainment has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Dividends

Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Global Eagle Entertainment does not pay a dividend. Sinclair Broadcast Group pays out 27.1% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Sinclair Broadcast Group and Global Eagle Entertainment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sinclair Broadcast Group $2.74 billion 1.13 $245.30 million $2.66 11.30
Global Eagle Entertainment $530.01 million 0.34 -$109.18 million ($1.38) -1.54

Sinclair Broadcast Group has higher revenue and earnings than Global Eagle Entertainment. Global Eagle Entertainment is trading at a lower price-to-earnings ratio than Sinclair Broadcast Group, indicating that it is currently the more affordable of the two stocks.

Summary

Sinclair Broadcast Group beats Global Eagle Entertainment on 12 of the 15 factors compared between the two stocks.

About Sinclair Broadcast Group

Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

About Global Eagle Entertainment

Global Eagle Entertainment Inc. is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. Its Connectivity segment provides airline partners and their passengers with Wireless Fidelity (Wi-Fi) connectivity over Ku-band satellite transmissions, and to a lesser extent operations solutions to airline customers. Its Content segment selects, manages and distributes wholly owned and licensed media content, video and music programming, applications, digital advertising solutions and games to over 150 airlines across the world, as well as to maritime and other away-from-home non-theatrical markets. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wi-Fi, movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services and e-commerce solutions.

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