Scholastic (NASDAQ:SCHL – Get Free Report) and Optimum Communications (NYSE:OPTU – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Volatility and Risk
Scholastic has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Optimum Communications has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Scholastic and Optimum Communications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scholastic | 0 | 3 | 0 | 0 | 2.00 |
| Optimum Communications | 4 | 5 | 0 | 0 | 1.56 |
Earnings & Valuation
This table compares Scholastic and Optimum Communications”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scholastic | $1.58 billion | 0.43 | $56.70 million | $1.40 | 25.61 |
| Optimum Communications | $8.59 billion | 0.03 | -$1.87 billion | ($10.39) | -0.09 |
Scholastic has higher earnings, but lower revenue than Optimum Communications. Optimum Communications is trading at a lower price-to-earnings ratio than Scholastic, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Scholastic and Optimum Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scholastic | 3.60% | 5.00% | 2.22% |
| Optimum Communications | -58.15% | N/A | -0.70% |
Insider & Institutional Ownership
82.6% of Scholastic shares are held by institutional investors. Comparatively, 54.8% of Optimum Communications shares are held by institutional investors. 12.8% of Scholastic shares are held by company insiders. Comparatively, 43.4% of Optimum Communications shares are held 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.
Summary
Scholastic beats Optimum Communications on 10 of the 13 factors compared between the two stocks.
About Scholastic
Scholastic Corporation publishes and distributes children’s books worldwide. It operates in three segments: Children’s Book Publishing and Distribution, Education Solutions, and International. The Children’s Book Publishing and Distribution segment engages in publication and distribution of children’s print, digital, and audio books, as well as media and interactive products through its school reading events and trade channel; and operation of school-based book clubs and book fairs in the United States. Its original publications include The Harry Potter, The Hunger Games, The Bad Guys, The Baby-Sitters Club, The Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Cat Kid Comic Club, and Clifford The Big Red Dog, as well as I Survived, Goosebumps; licensed properties comprising the Peppa Pig and Pokemon; and publishes and creates Klutz and Make Believe Ideas titles, such as Mini Shake Shop, Pokemon Stained Glass, LEGO Miniature Photography, and the Never Touch series. The Education Solutions segment publishes and distributes classroom magazines under the Scholastic News, Scholastic Scope, Storyworks, Let’s Find Out, and Junior Scholastic names; supplemental and classroom materials and programs, and related support services; and print and on-line reference, and non-fiction products, as well as consulting services. The International segment publishes and distributes English, Hindi, and French language children’s books; and operates school-based marketing channels, as well as supply original and licensed children’s books, and supplemental educational materials including professional books for teachers. It distributes its products and services directly to schools and libraries through retail stores and the Internet. The company was founded in 1920 and is headquartered in New York, New York.
About Optimum Communications
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.
Receive News & Ratings for Scholastic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Scholastic and related companies with MarketBeat.com's FREE daily email newsletter.
