Analyzing Cable One (NYSE:CABO) & Charter Communications (NASDAQ:CHTR)

Charter Communications (NASDAQ:CHTR) and Cable One (NYSE:CABO) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Risk & Volatility

Charter Communications has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Cable One has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Institutional & Insider Ownership

81.8% of Charter Communications shares are held by institutional investors. Comparatively, 89.9% of Cable One shares are held by institutional investors. 1.1% of Charter Communications 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 company is poised for long-term growth.

Valuation and Earnings

This table compares Charter Communications and Cable One”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charter Communications	$54.77 billion	0.24	$4.99 billion	$38.51	2.90
Cable One	$1.50 billion	0.02	-$356.46 million	($185.06)	-0.03

Charter Communications has higher revenue and earnings than Cable One. Cable One is trading at a lower price-to-earnings ratio than Charter Communications, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Charter Communications and Cable One, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charter Communications	7	10	5	0	1.91
Cable One	2	4	0	0	1.67

Charter Communications presently has a consensus target price of $202.53, suggesting a potential upside of 81.66%. Cable One has a consensus target price of $80.00, suggesting a potential upside of 1,373.30%. Given Cable One’s higher possible upside, analysts plainly believe Cable One is more favorable than Charter Communications.

Profitability

This table compares Charter Communications and Cable One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charter Communications	9.05%	23.71%	3.19%
Cable One	-72.83%	-3.97%	-0.86%

Summary

Charter Communications beats Cable One on 12 of the 14 factors compared between the two stocks.

About Charter Communications

Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based internet, video, and mobile and voice services; a suite of broadband connectivity services, including fixed internet, WiFi, and mobile; Advanced WiFi services; Spectrum Security Shield; in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their fixed wireless internet experience; out-of-home WiFi; and Spectrum WiFi services. It also offers voice communications services using voice over internet protocol technology; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. In addition, the company provides mobile services; video programming, static IP and business WiFi, voice, and e-mail and security services; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App to create data-driven linear TV campaigns for local advertisers. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports networks and news channels. It serves approximately 32 million customers in 41 states. Charter Communications, Inc.was founded in 1993 and is headquartered in Stamford, Connecticut.

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.