Sinclair Broadcast Group (SBGI) vs. Its Competitors Critical Comparison

Sinclair Broadcast Group (NASDAQ: SBGI) is one of 31 publicly-traded companies in the “Broadcasting” industry, but how does it weigh in compared to its peers? We will compare Sinclair Broadcast Group to related companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, risk and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sinclair Broadcast Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sinclair Broadcast Group 0 0 5 0 3.00
Sinclair Broadcast Group Competitors 220 1023 2159 48 2.59

Sinclair Broadcast Group presently has a consensus price target of $47.00, suggesting a potential upside of 63.76%. As a group, “Broadcasting” companies have a potential upside of 22.93%. Given Sinclair Broadcast Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sinclair Broadcast Group is more favorable than its peers.

Volatility & Risk

Sinclair Broadcast Group has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Sinclair Broadcast Group’s peers have a beta of 1.54, indicating that their average stock price is 54% 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 2.5%. Sinclair Broadcast Group pays out 24.8% of its earnings in the form of a dividend. As a group, “Broadcasting” companies pay a dividend yield of 1.8% and pay out 38.9% of their earnings in the form of a dividend. Sinclair Broadcast Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Sinclair Broadcast Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sinclair Broadcast Group 9.70% 32.06% 4.29%
Sinclair Broadcast Group Competitors -20.60% 12.99% 2.24%

Institutional and Insider Ownership

83.1% of Sinclair Broadcast Group shares are owned by institutional investors. Comparatively, 55.6% of shares of all “Broadcasting” companies are owned by institutional investors. 28.2% of Sinclair Broadcast Group shares are owned by company insiders. Comparatively, 14.5% of shares of all “Broadcasting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Sinclair Broadcast Group and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sinclair Broadcast Group $2.82 billion $893.47 million 9.90
Sinclair Broadcast Group Competitors $10.65 billion $3.20 billion 18.96

Sinclair Broadcast Group’s peers have higher revenue and earnings than Sinclair Broadcast Group. Sinclair Broadcast Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Sinclair Broadcast Group beats its peers on 11 of the 15 factors compared.

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.

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