Reviewing Grupo Televisa (NYSE:TV) and Swisscom (OTCMKTS:SCMWY)

Swisscom (OTCMKTS:SCMWY) and Grupo Televisa (NYSE:TV) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Institutional and Insider Ownership

55.8% of Grupo Televisa shares are owned by institutional investors. 1.0% of Swisscom shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Swisscom pays an annual dividend of $1.61 per share and has a dividend yield of 1.8%. Grupo Televisa pays an annual dividend of $0.08 per share and has a dividend yield of 2.7%. Swisscom pays out 54.4% of its earnings in the form of a dividend. Grupo Televisa pays out -9.0% 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. Grupo Televisa is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Swisscom	8.41%	10.56%	3.53%
Grupo Televisa	-15.75%	-8.56%	-3.96%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Swisscom and Grupo Televisa, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swisscom	2	3	1	0	1.83
Grupo Televisa	1	3	2	0	2.17

Grupo Televisa has a consensus target price of $5.07, suggesting a potential upside of 72.04%. Given Grupo Televisa’s stronger consensus rating and higher probable upside, analysts clearly believe Grupo Televisa is more favorable than Swisscom.

Risk and Volatility

Swisscom has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.

Earnings & Valuation

This table compares Swisscom and Grupo Televisa”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swisscom	$18.16 billion	26.24	$1.53 billion	$2.96	31.07
Grupo Televisa	$58.88 billion	0.03	-$460.38 million	($0.89)	-3.31

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

About Swisscom

Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, such as telephony, TV, broadband, and mobile offerings, as well as sells terminal equipment; and telecom and communications solutions for large corporations and small and medium-sized enterprises. It also provides cloud, outsourcing, workplace, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed-line and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, the company plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband and mobile services, such as telephony, mobile offerings, and broadband services, as well as ICT solutions for residential, business, and wholesale customers. Further, it provides IT and network services; online and telephone directories; and cross-platform retail media and security communication services, as well as builds and maintains wired and wireless networks. The company was founded in 1998 and is based in Bern, Switzerland.

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.