Analyzing Starz Acquisition (STRZA) & Comcast Corporation (CMCSA)

Starz Acquisition (NASDAQ: STRZA) and Comcast Corporation (NASDAQ:CMCSA) are both mid-cap companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Dividends

Comcast Corporation pays an annual dividend of $0.63 per share and has a dividend yield of 1.8%. Starz Acquisition does not pay a dividend. Comcast Corporation pays out 29.7% of its earnings in the form of a dividend.

Volatility & Risk

Starz Acquisition has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Comcast Corporation has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Institutional and Insider Ownership

80.2% of Starz Acquisition shares are owned by institutional investors. Comparatively, 81.6% of Comcast Corporation shares are owned by institutional investors. 8.5% of Starz Acquisition shares are owned by insiders. Comparatively, 1.3% of Comcast Corporation shares are owned 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.

Profitability

This table compares Starz Acquisition and Comcast Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starz Acquisition -68.21% -14.75% -6.41%
Comcast Corporation 11.99% 17.17% 5.30%

Earnings and Valuation

This table compares Starz Acquisition and Comcast Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Starz Acquisition N/A N/A N/A $1.80 19.73
Comcast Corporation $80.40 billion 2.09 $8.70 billion $2.12 16.93

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Starz Acquisition and Comcast Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starz Acquisition 0 0 0 0 N/A
Comcast Corporation 0 1 24 0 2.96

Comcast Corporation has a consensus price target of $46.05, suggesting a potential upside of 28.30%. Given Comcast Corporation’s higher probable upside, analysts plainly believe Comcast Corporation is more favorable than Starz Acquisition.

Summary

Comcast Corporation beats Starz Acquisition on 10 of the 12 factors compared between the two stocks.

About Starz Acquisition

Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.

About Comcast Corporation

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.

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