Financial Survey: Discovery Communications (DISCA) vs. Its Rivals

Discovery Communications (NASDAQ: DISCA) is one of 15 public companies in the “Television Broadcasting” industry, but how does it weigh in compared to its competitors? We will compare Discovery Communications to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Valuation & Earnings

This table compares Discovery Communications and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Discovery Communications $6.50 billion $1.19 billion 9.19
Discovery Communications Competitors $3.48 billion $571.33 million 42.76

Discovery Communications has higher revenue and earnings than its competitors. Discovery Communications is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Discovery Communications and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 3 11 3 0 2.00
Discovery Communications Competitors 85 548 499 4 2.37

Discovery Communications presently has a consensus price target of $24.36, suggesting a potential upside of 38.79%. As a group, “Television Broadcasting” companies have a potential upside of 20.85%. Given Discovery Communications’ higher probable upside, equities research analysts plainly believe Discovery Communications is more favorable than its competitors.

Profitability

This table compares Discovery Communications and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Discovery Communications 16.63% 22.24% 6.83%
Discovery Communications Competitors 11.20% 95.07% 6.14%

Insider and Institutional Ownership

46.2% of Discovery Communications shares are owned by institutional investors. Comparatively, 68.9% of shares of all “Television Broadcasting” companies are owned by institutional investors. 6.8% of Discovery Communications shares are owned by insiders. Comparatively, 8.2% of shares of all “Television Broadcasting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Discovery Communications has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Discovery Communications’ competitors have a beta of 1.57, indicating that their average share price is 57% more volatile than the S&P 500.

Summary

Discovery Communications competitors beat Discovery Communications on 8 of the 13 factors compared.

About Discovery Communications

Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company’s portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.

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