Analyzing Cable One (NYSE:CABO) and Cablevision Systems (CVC)

Cable One (NYSE: CABO) and Cablevision Systems (NYSE:CVC) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cable One and Cablevision Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cable One 1 0 2 0 2.33
Cablevision Systems 0 0 0 0 N/A

Cable One presently has a consensus price target of $646.00, indicating a potential downside of 12.70%. Given Cable One’s higher possible upside, analysts plainly believe Cable One is more favorable than Cablevision Systems.

Institutional and Insider Ownership

75.7% of Cable One shares are held by institutional investors. 1.3% of Cable One shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Cable One and Cablevision Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cable One $860.73 million 4.92 $372.61 million $18.63 39.72
Cablevision Systems N/A N/A N/A N/A N/A

Cable One has higher revenue and earnings than Cablevision Systems.

Dividends

Cable One pays an annual dividend of $7.00 per share and has a dividend yield of 0.9%. Cablevision Systems does not pay a dividend. Cable One pays out 37.6% of its earnings in the form of a dividend.

Profitability

This table compares Cable One and Cablevision Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cable One 12.44% 22.83% 6.77%
Cablevision Systems 5.75% N/A 5.59%

Summary

Cable One beats Cablevision Systems on 9 of the 10 factors compared between the two stocks.

About Cable One

Cable One, Inc. is a provider of data, video and voice services. The Company offers products, including Residential Video Services, Residential Data Services, Residential Voice Services, Business Services and Advertising. As of May 1, 2017, the Company provided data, video and voice services in 21 Western, Midwestern and Southern states. As of December 31, 2016, the Company provided these broadband services to residential and business customers in more than 35 cable systems covering over 400 cities and towns. The Company provides these broadband services to residential and business customers in approximately 40 cable systems covering over 400 cities and towns. The markets it serves are non-metropolitan, secondary markets, with its customers located in five states: Arizona, Idaho, Mississippi, Oklahoma and Texas. The Company offers a range of residential video services, generally ranging from a basic video service to digital service with access to hundreds of channels.

About Cablevision Systems

Cablevision Systems Corporation (Cablevision), through its subsidiary, CSC Holdings, LLC (CSC Holdings), operates cable operations business in the United States. The Company operates in three segments: Cable, Lightpath and Other. The Company’s Cable segment offers Cable television service, which delivers multiple channels of video programming to subscribers who pay a monthly fee for the services they receive. The Company operates Lightpath segmeny, through its subsidiary, Cablevision Lightpath, Inc. (Lightpath), which provides Ethernet-based data, Internet, voice and video transport and managed services to the business market in the New York metropolitan area. Lightpath also provides managed information technology services to businesses, including hosted voice services, managed wireless fidelity, managed desktop and server backup, and managed collaboration services. The Other segment operations consist of the operations of Newsday, News 12 Networks and Cablevision Media Sales.

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