Grupo Televisa (NYSE:TV) vs. National CineMedia (NASDAQ:NCMI) Head-To-Head Contrast

Grupo Televisa (NYSE:TV) and National CineMedia (NASDAQ:NCMI) are both small-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Grupo Televisa and National CineMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Televisa	-15.28%	-8.33%	-3.87%
National CineMedia	-3.05%	-1.31%	-0.99%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Grupo Televisa and National CineMedia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Televisa	2	3	1	0	1.83
National CineMedia	0	3	3	0	2.50

Grupo Televisa presently has a consensus price target of $6.55, suggesting a potential upside of 186.65%. National CineMedia has a consensus price target of $4.81, suggesting a potential upside of 128.08%. Given Grupo Televisa’s higher possible upside, equities research analysts plainly believe Grupo Televisa is more favorable than National CineMedia.

Institutional & Insider Ownership

55.8% of Grupo Televisa shares are owned by institutional investors. Comparatively, 69.5% of National CineMedia shares are owned by institutional investors. 1.7% of National CineMedia shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Grupo Televisa has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, National CineMedia has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Earnings and Valuation

This table compares Grupo Televisa and National CineMedia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Televisa	$57.98 billion	0.02	-$478.58 million	($0.91)	-2.51
National CineMedia	$249.00 million	0.79	-$10.60 million	($0.09)	-23.44

National CineMedia has lower revenue, but higher earnings than Grupo Televisa. National CineMedia is trading at a lower price-to-earnings ratio than Grupo Televisa, indicating that it is currently the more affordable of the two stocks.

Dividends

Grupo Televisa pays an annual dividend of $0.08 per share and has a dividend yield of 3.5%. National CineMedia pays an annual dividend of $0.12 per share and has a dividend yield of 5.7%. Grupo Televisa pays out -8.8% of its earnings in the form of a dividend. National CineMedia pays out -133.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. National CineMedia is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

National CineMedia beats Grupo Televisa on 13 of the 16 factors compared between the two stocks.

About Grupo Televisa

Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.

About National CineMedia

National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.