Financial Comparison: Discovery Communications (DISCK) and DISH Network (DISH)

Discovery Communications (NASDAQ: DISCK) and DISH Network (NASDAQ:DISH) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Discovery Communications and DISH Network, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Discovery Communications 0 2 0 0 2.00
DISH Network 0 8 7 0 2.47

Discovery Communications presently has a consensus price target of $29.00, indicating a potential upside of 20.53%. DISH Network has a consensus price target of $57.10, indicating a potential upside of 68.44%. Given DISH Network’s stronger consensus rating and higher probable upside, analysts plainly believe DISH Network is more favorable than Discovery Communications.

Institutional and Insider Ownership

54.4% of Discovery Communications shares are owned by institutional investors. Comparatively, 47.9% of DISH Network shares are owned by institutional investors. 5.0% of Discovery Communications shares are owned by company insiders. Comparatively, 49.2% of DISH Network shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Discovery Communications has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, DISH Network has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Discovery Communications and DISH Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Discovery Communications -7.40% 19.34% 5.10%
DISH Network 14.75% 20.48% 4.30%

Earnings & Valuation

This table compares Discovery Communications and DISH Network’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Discovery Communications $6.87 billion 1.83 -$337.00 million N/A N/A
DISH Network $14.39 billion 1.10 $2.10 billion $2.54 13.35

DISH Network has higher revenue and earnings than Discovery Communications.

Summary

DISH Network beats Discovery Communications on 9 of the 13 factors compared between the two stocks.

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.

About DISH Network

DISH Network Corporation, together with its subsidiaries, provides pay-TV services in the United States. The company operates in two segments, Pay-TV and Wireless. It offers video services under the DISH TV brand; and programming packages that include programming through national broadcast networks, local broadcast networks, and national and regional cable networks, as well as regional and specialty sports channels, premium movie channels, and Latino and international programming packages. The company also provides access to movies and TV shows via TV or Internet-connected tablets, smartphones, and computers; and dishanywhere.com and mobile applications for smartphones and tablets to view authorized content, search program listings, and remotely control certain features. In addition, it offers Sling TV services, including Sling International, Sling Latino, Sling Orange, and Sling Blue services that require an Internet connection and are available on streaming-capable devices, such as TVs, tablets, computers, game consoles, and smart phones primarily to consumers who do not subscribe to traditional satellite and cable pay-TV services. Further, the company provides satellite and wireline broadband services under the dishNET brand, as well as has wireless spectrum licenses and related assets. As of December 31, 2017, it had 13.242 million Pay-TV subscribers. The company offers receiver systems and programming through direct sales channels, small satellite retailers, direct marketing groups, local and regional consumer electronics stores, retailers, and telecommunications companies. DISH Network Corporation was founded in 1980 and is headquartered in Englewood, Colorado.

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