Cable One (NYSE:CABO – Get Free Report) and News (NASDAQ:NWSA – Get Free Report) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
Risk & Volatility
Cable One has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, News has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Cable One and News, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cable One | 2 | 4 | 0 | 0 | 1.67 |
| News | 0 | 1 | 6 | 0 | 2.86 |
Cable One presently has a consensus price target of $80.00, indicating a potential upside of 1,748.00%. News has a consensus price target of $37.80, indicating a potential upside of 43.16%. Given Cable One’s higher probable upside, research analysts plainly believe Cable One is more favorable than News.
Profitability
This table compares Cable One and News’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cable One | -72.83% | -3.97% | -0.86% |
| News | 6.76% | 7.40% | 4.44% |
Institutional & Insider Ownership
89.9% of Cable One shares are owned by institutional investors. Comparatively, 67.0% of News shares are owned by institutional investors. 0.9% of Cable One shares are owned by company insiders. Comparatively, 11.6% of News shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Cable One and News”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cable One | $1.50 billion | 0.02 | -$356.46 million | ($185.06) | -0.02 |
| News | $9.03 billion | 1.58 | $573.00 million | $1.03 | 25.63 |
News has higher revenue and earnings than Cable One. Cable One is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Summary
News beats Cable One on 12 of the 14 factors compared between the two stocks.
About Cable One
Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides various residential video services from basic video service to digital services with access to hundreds of channels; and provides a cloud-based DVR feature that does not require the use of a set-top boxes. In addition, the company offers Sparklight TV, an IPTV video service that allows customers to stream its video channels from the cloud through an app on supported devices, such as the Amazon Firestick, Apple TV, and Android-based smart televisions. Further, it provides data, voice, and video products to business customers, including small to mid-markets, enterprises, and wholesale and carrier customers. The company serves residential and business customers, comprising data, video, and voice services. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
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