Cable One (NYSE:CABO) and Comcast (NASDAQ:CMCSA) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cable One $1.07 billion 6.06 $164.76 million $28.77 39.60
Comcast $94.51 billion 2.14 $11.73 billion $2.55 17.07

Comcast has higher revenue and earnings than Cable One. Comcast is trading at a lower price-to-earnings ratio than Cable One, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cable One and Comcast, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cable One 1 3 2 0 2.17
Comcast 0 6 16 0 2.73

Cable One currently has a consensus target price of $1,075.00, indicating a potential downside of 5.65%. Comcast has a consensus target price of $44.74, indicating a potential upside of 2.75%. Given Comcast’s stronger consensus rating and higher probable upside, analysts clearly believe Comcast is more favorable than Cable One.

Dividends

Cable One pays an annual dividend of $8.00 per share and has a dividend yield of 0.7%. Comcast pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. Cable One pays out 27.8% of its earnings in the form of a dividend. Comcast pays out 32.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cable One has raised its dividend for 3 consecutive years and Comcast has raised its dividend for 8 consecutive years. Comcast is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cable One and Comcast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cable One 15.01% 22.57% 7.20%
Comcast 12.34% 17.04% 5.54%

Institutional & Insider Ownership

79.3% of Cable One shares are held by institutional investors. Comparatively, 81.6% of Comcast shares are held by institutional investors. 1.1% of Cable One shares are held by company insiders. Comparatively, 1.4% of Comcast shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Cable One has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Comcast has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Summary

Comcast beats Cable One on 10 of the 17 factors compared between the two stocks.

Cable One Company Profile

Cable One, Inc. owns and operates cable systems that provide data, video, and voice services. The company offers residential data services, including WiFi ONE, a Wi-Fi solution to enhance Wi-Fi signal throughout the home. It also provides residential video services, such as local networks; local community programming that includes governmental and public access; and other channels, which comprise weather, shopping, and religious channels, as well as digital video services, including national and regional cable networks, music channels, and an interactive electronic programming guide with parental controls. In addition, the company offers premium channels; and advanced video services, such as whole-home DVRs and high-definition set-top boxes, as well as TV Everywhere product, which enables its video customers to stream various channels and shows to mobile devices and computers. Further, it provides residential voice and international calling by the minute services. Additionally, the company offers data, voice, and video products to business customers that include small to mid-markets, enterprises, and wholesale and carrier customers; and digital advertising products, including Website construction, targeted display, and short- and long-form video production. As of February 27, 2019, it served approximately 800,000 residential and business customers in 21 Western, Midwestern, and Southern United States. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.

Comcast Company Profile

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks, and Sky segments. The Cable Communications segment offers cable services, including high-speed Internet, video, voice, and security and automation services to residential and business customers under the Xfinity name; and advertising services. The Cable Networks segment operates national cable networks that provide various entertainment, news and information, and sports content; regional sports and news networks; international cable networks; and various digital properties, including brand-aligned Websites, as well as engages in the cable television studio production operations. The Broadcast Television segment operates NBC and Telemundo broadcast networks, NBC and Telemundo local broadcast television stations, broadcast television studio production operations, and various digital properties. The Filmed Entertainment segment produces, acquires, markets, and distributes filmed entertainment under the Universal Pictures, Illumination, DreamWorks Animation, and Focus Features names. It also develops, produces, and licenses stage plays; and distributes filmed entertainment produced by third parties. The Theme Parks segment operates Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. The Sky segment offers direct-to-consumer services, such as video, high-speed Internet, voice, and wireless phone services; and content services comprising operating entertainment networks, the Sky News broadcast network, and Sky Sports networks. The company also provides a wireless phone service under the Xfinity Mobile name; and owns the Philadelphia Flyers, as well as the Wells Fargo Center arena in Philadelphia, Pennsylvania. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.

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