Shaw Communications (NYSE:SJR) and Hemisphere Media Group (NASDAQ:HMTV) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares Shaw Communications and Hemisphere Media Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shaw Communications $4.01 billion 2.63 $46.98 million $1.18 17.53
Hemisphere Media Group $124.46 million 4.54 -$13.43 million N/A N/A

Shaw Communications has higher revenue and earnings than Hemisphere Media Group.

Profitability

This table compares Shaw Communications and Hemisphere Media Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shaw Communications 2.29% 14.12% 5.78%
Hemisphere Media Group -28.61% -9.55% -4.48%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Shaw Communications and Hemisphere Media Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shaw Communications 0 2 4 0 2.67
Hemisphere Media Group 0 0 1 0 3.00

Shaw Communications presently has a consensus target price of $28.00, indicating a potential upside of 35.40%. Hemisphere Media Group has a consensus target price of $17.00, indicating a potential upside of 18.30%. Given Shaw Communications’ higher possible upside, equities research analysts plainly believe Shaw Communications is more favorable than Hemisphere Media Group.

Insider and Institutional Ownership

54.1% of Shaw Communications shares are held by institutional investors. Comparatively, 30.3% of Hemisphere Media Group shares are held by institutional investors. 1.0% of Shaw Communications shares are held by insiders. Comparatively, 51.9% of Hemisphere Media Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Shaw Communications has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Hemisphere Media Group has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Dividends

Shaw Communications pays an annual dividend of $0.90 per share and has a dividend yield of 4.4%. Hemisphere Media Group does not pay a dividend. Shaw Communications pays out 76.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shaw Communications has increased its dividend for 2 consecutive years.

Summary

Shaw Communications beats Hemisphere Media Group on 11 of the 15 factors compared between the two stocks.

Shaw Communications Company Profile

Shaw Communications Inc. operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The Wireline segment provides broadband Internet, Shaw Go WiFi, video, and digital phone services to residential customers; and Internet, data, WiFi, digital phone, and video services to business customers. The Wireless segment provides wireless voice and data communications services for customers. The company was formerly known as Shaw Cable systems Ltd. and changed its name to Shaw Communications Inc. in May 1993. Shaw Communications Inc. was founded in 1966 and is based in Calgary, Canada.

Hemisphere Media Group Company Profile

Hemisphere Media Group, Inc. owns and operates Spanish-language cable television broadcasting networks and digital content platform in the United States and internationally. It operates Cinelatino, a cable movie network with approximately 20 million subscribers in the United States, Latin America, and Canada; WAPA, a broadcast television network and television content producer; and WAPA.TV, a broadband news and entertainment Website, as well as distributes WAPA2 Deportes, a sports television network in Puerto Rico. The company also operates WAPA America, a cable television network that serves 4.4 million subscribers in the United States; and Pasiones, a cable television network that offers telenovelas and serialized dramas to 4.5 million subscribers in the United States and 14.8 million subscribers in Latin America. In addition, it operates Centroamerica TV, a cable television network that offers news and entertainment, and soccer programming to 4.1 million subscribers in Central America; and Television Dominicana, a cable television network that provides news and entertainment to approximately 1.9 million subscribers in the Dominican Republic. Further, the company operates Canal 1, a television network in Colombia; and Pantaya, a cross-platform Spanish-language digital subscription service that offers Spanish-language films. The company was founded in 2013 and is headquartered in Coral Gables, Florida.

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