Financial Analysis: Cablevision Systems (CVC) and WideOpenWest (WOW)

Cablevision Systems (NYSE: CVC) and WideOpenWest (NYSE:WOW) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Dividends

Cablevision Systems pays an annual dividend of $0.15 per share and has a dividend yield of 0.4%. WideOpenWest does not pay a dividend. Cablevision Systems pays out 18.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Cablevision Systems and WideOpenWest, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cablevision Systems 0 0 0 0 N/A
WideOpenWest 0 0 5 1 3.17

WideOpenWest has a consensus target price of $19.33, suggesting a potential upside of 99.72%. Given WideOpenWest’s higher probable upside, analysts plainly believe WideOpenWest is more favorable than Cablevision Systems.

Institutional & Insider Ownership

53.8% of WideOpenWest shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cablevision Systems N/A N/A N/A $0.82 42.52
WideOpenWest $1.24 billion 0.69 $26.30 million N/A N/A

WideOpenWest has higher revenue and earnings than Cablevision Systems.

Profitability

This table compares Cablevision Systems and WideOpenWest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cablevision Systems 5.75% N/A 5.59%
WideOpenWest N/A N/A N/A

Summary

WideOpenWest beats Cablevision Systems on 6 of the 9 factors compared between the two stocks.

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.

About WideOpenWest

WideOpenWest, Inc. is a cable operator in the United States. The Company provides high-speed data (HSD), cable television (Video), digital telephony (Telephony) and business-class services. The Company’s products are available either as a bundle or as an individual service to residential and business services customers. The Company’s services include data services, video services, telephony services, and business services. Its business-class service serves approximately 3 million homes and businesses. The Company’s services are delivered across 19 markets through hybrid fiber-coaxial (HFC) cable network.

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