Head to Head Review: Comcast Corporation (CMCSA) vs. Sinclair Broadcast Group (SBGI)

Comcast Corporation (NASDAQ: CMCSA) and Sinclair Broadcast Group (NASDAQ:SBGI) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares Comcast Corporation and Sinclair Broadcast Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comcast Corporation 11.45% 16.80% 5.23%
Sinclair Broadcast Group 9.70% 32.06% 4.29%

Dividends

Comcast Corporation pays an annual dividend of $0.63 per share and has a dividend yield of 1.7%. Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.5%. Comcast Corporation pays out 31.7% of its earnings in the form of a dividend. Sinclair Broadcast Group pays out 24.8% 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. Sinclair Broadcast Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for Comcast Corporation and Sinclair Broadcast Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comcast Corporation 0 0 23 0 3.00
Sinclair Broadcast Group 0 0 5 0 3.00

Comcast Corporation presently has a consensus target price of $45.83, indicating a potential upside of 21.16%. Sinclair Broadcast Group has a consensus target price of $47.00, indicating a potential upside of 65.78%. Given Sinclair Broadcast Group’s higher probable upside, analysts plainly believe Sinclair Broadcast Group is more favorable than Comcast Corporation.

Valuation and Earnings

This table compares Comcast Corporation and Sinclair Broadcast Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Comcast Corporation $83.97 billion 2.12 $27.79 billion $1.99 19.06
Sinclair Broadcast Group $2.82 billion 1.03 $893.47 million $2.90 9.78

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

Risk & Volatility

Comcast Corporation has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Sinclair Broadcast Group has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Institutional and Insider Ownership

82.0% of Comcast Corporation shares are held by institutional investors. Comparatively, 83.1% of Sinclair Broadcast Group shares are held by institutional investors. 1.3% of Comcast Corporation shares are held by company insiders. Comparatively, 28.2% of Sinclair Broadcast Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Sinclair Broadcast Group beats Comcast Corporation on 8 of the 15 factors compared between the two stocks.

Comcast Corporation 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.

Sinclair Broadcast Group Company Profile

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.

Receive News & Ratings for Comcast Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Comcast Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply