Cable One (NYSE:CABO – Get Free Report) and News (NASDAQ:NWS – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Earnings & Valuation
This table compares Cable One and News”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cable One | $1.50 billion | 0.01 | -$356.46 million | ($275.24) | -0.01 |
| News | $9.16 billion | 1.75 | $573.00 million | $1.12 | 26.50 |
News has higher revenue and earnings than Cable One. Cable One is trading at a lower price-to-earnings ratio than News, 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 News, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cable One | 2 | 3 | 0 | 0 | 1.60 |
| News | 0 | 0 | 1 | 1 | 3.50 |
Cable One currently has a consensus target price of $63.75, indicating a potential upside of 1,953.14%. Given Cable One’s higher probable upside, analysts plainly believe Cable One is more favorable than News.
Volatility & Risk
Cable One has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, News has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Profitability
This table compares Cable One and News’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cable One | -112.20% | -22.87% | -3.53% |
| News | 6.76% | 7.42% | 4.45% |
Institutional & Insider Ownership
89.9% of Cable One shares are owned by institutional investors. Comparatively, 14.6% of News shares are owned by institutional investors. 0.9% of Cable One shares are owned by insiders. Comparatively, 11.1% of News shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
News beats Cable One on 13 of the 15 factors compared between the two stocks.
About Cable One
Cable One, Inc. is a broadband communications provider serving residential and business customers, primarily in smaller communities across the United States. It markets many of its residential services under the Sparklight name. The company provides high-speed internet, cable television and voice services to households. Its business offerings include internet connectivity, data transport, voice and other communications solutions for organizations of varying sizes. Cable One traces its history to a cable television business established in 1986 and became an independent public company after its separation from Graham Holdings in 1997.
About News
News Corporation, which trades on Nasdaq as NWS, is a global media and information services company. Its businesses span news and financial information, book publishing, digital real estate services, and news media. Its brands and operations include Dow Jones, publisher of The Wall Street Journal and provider of financial information; HarperCollins Publishers; digital real estate platforms such as Realtor.com; and news outlets including the New York Post, The Times and The Sun in the United Kingdom, and publications in Australia.
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