Cable One vs Comcast Which Is a Smarter Choice?

Cable One and Comcast are two major players in the telecommunications industry, each offering a range of services including cable television, internet, and phone service. When comparing their stocks, investors may look at factors such as revenue growth, profitability, market share, and future prospects. Cable One is known for its strong revenue growth and high profitability, while Comcast is a larger company with a diverse range of offerings. Understanding the differences between these two stocks can help investors make informed decisions about their investment portfolio.

Cable One or Comcast?

When comparing Cable One and Comcast, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Cable One and Comcast.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Cable One has a dividend yield of 2.92%, while Comcast has a dividend yield of 2.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cable One reports a 5-year dividend growth of 9.11% year and a payout ratio of 19.92%. On the other hand, Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Cable One P/E ratio at 8.92 and Comcast's P/E ratio at 11.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cable One P/B ratio is 1.20 while Comcast's P/B ratio is 1.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cable One has seen a 5-year revenue growth of 0.57%, while Comcast's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cable One's ROE at 13.31% and Comcast's ROE at 17.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $397.47 for Cable One and $60.40 for Comcast. Over the past year, Cable One's prices ranged from $311.28 to $574.75, with a yearly change of 84.64%. Comcast's prices fluctuated between $52.84 and $66.80, with a yearly change of 26.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.