Critical Comparison: Scholastic (NASDAQ:SCHL) and Grupo Televisa (NYSE:TV)

Scholastic (NASDAQ:SCHL – Get Free Report) and Grupo Televisa (NYSE:TV – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares Scholastic and Grupo Televisa”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scholastic $1.58 billion 0.40 $56.70 million $1.40 23.99
Grupo Televisa $3.07 billion 0.41 -$478.58 million ($0.91) -2.58

Scholastic has higher earnings, but lower revenue than Grupo Televisa. Grupo Televisa is trading at a lower price-to-earnings ratio than Scholastic, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Scholastic and Grupo Televisa, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scholastic 0 3 0 0 2.00
Grupo Televisa 2 3 1 0 1.83

Scholastic presently has a consensus target price of $35.00, indicating a potential upside of 4.23%. Grupo Televisa has a consensus target price of $6.55, indicating a potential upside of 179.32%. Given Grupo Televisa’s higher possible upside, analysts plainly believe Grupo Televisa is more favorable than Scholastic.

Insider & Institutional Ownership

82.6% of Scholastic shares are held by institutional investors. Comparatively, 55.8% of Grupo Televisa shares are held by institutional investors. 12.8% of Scholastic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Scholastic has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Profitability

This table compares Scholastic and Grupo Televisa’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scholastic 3.60% 4.71% 2.19%
Grupo Televisa -15.28% -8.33% -3.87%

Summary

Scholastic beats Grupo Televisa on 9 of the 14 factors compared between the two stocks.

About Scholastic

(Get Free Report)

Scholastic Corporation publishes and distributes children’s books worldwide. It operates in three segments: Children’s Book Publishing and Distribution, Education Solutions, and International. The Children’s Book Publishing and Distribution segment engages in publication and distribution of children’s print, digital, and audio books, as well as media and interactive products through its school reading events and trade channel; and operation of school-based book clubs and book fairs in the United States. Its original publications include The Harry Potter, The Hunger Games, The Bad Guys, The Baby-Sitters Club, The Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Cat Kid Comic Club, and Clifford The Big Red Dog, as well as I Survived, Goosebumps; licensed properties comprising the Peppa Pig and Pokemon; and publishes and creates Klutz and Make Believe Ideas titles, such as Mini Shake Shop, Pokemon Stained Glass, LEGO Miniature Photography, and the Never Touch series. The Education Solutions segment publishes and distributes classroom magazines under the Scholastic News, Scholastic Scope, Storyworks, Let’s Find Out, and Junior Scholastic names; supplemental and classroom materials and programs, and related support services; and print and on-line reference, and non-fiction products, as well as consulting services. The International segment publishes and distributes English, Hindi, and French language children’s books; and operates school-based marketing channels, as well as supply original and licensed children’s books, and supplemental educational materials including professional books for teachers. It distributes its products and services directly to schools and libraries through retail stores and the Internet. The company was founded in 1920 and is headquartered in New York, New York.

About Grupo Televisa

(Get Free Report)

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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