USA Today (NYSE:TDAY – Get Free Report) and Cable One (NYSE:CABO – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares USA Today and Cable One’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Today | -1.81% | -21.13% | -1.85% |
| Cable One | -72.83% | -3.97% | -0.86% |
Volatility & Risk
USA Today has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Cable One has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USA Today | $2.30 billion | 0.40 | $1.75 million | ($0.30) | -20.97 |
| Cable One | $1.50 billion | 0.10 | -$356.46 million | ($185.06) | -0.14 |
USA Today has higher revenue and earnings than Cable One. USA Today is trading at a lower price-to-earnings ratio than Cable One, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
76.7% of USA Today shares are held by institutional investors. Comparatively, 89.9% of Cable One shares are held by institutional investors. 4.4% of USA Today shares are held by insiders. Comparatively, 0.9% of Cable One shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for USA Today and Cable One, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Today | 1 | 1 | 2 | 0 | 2.25 |
| Cable One | 3 | 3 | 0 | 0 | 1.50 |
USA Today currently has a consensus price target of $9.03, suggesting a potential upside of 43.48%. Cable One has a consensus price target of $85.40, suggesting a potential upside of 239.16%. Given Cable One’s higher probable upside, analysts plainly believe Cable One is more favorable than USA Today.
Summary
USA Today beats Cable One on 9 of the 14 factors compared between the two stocks.
About USA Today
Gannett Co Inc. invests in, owns, and operates local media assets in the United States. The company’s principal products include 125 daily newspapers with total paid circulation of approximately 1.4 million; 314 weekly newspapers with total paid circulation of approximately 315,000 and total free circulation of approximately 1.9 million; 124 shoppers with total circulation of approximately 3.0 million; and 538 locally-focused Websites, including Internet and mobile devices with approximately 224 million page views per month. Its principal products also comprise 2 yellow page directories with a total distribution of approximately 230,000 that cover a population of approximately 411,000 people; 68 business publications; and Propel digital marketing and business services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it provides print and online products that offer local market news and information on various topics comprising local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports, as well as print and digital advertising products, as well as commercial printing and regional business-oriented publications services. The company reaches approximately 20 million people per week; and serves approximately 220,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.
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.
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