There are some of us who just can’t live without some form of entertainment. Because of this, some companies have the innate ability to turn a profit regardless of economic conditions. I have selected five media related companies to see if any are worth an investment.
DIRECTV Group, Inc. (DTV) – As a provider of digital entertainment, DIRECTV has the ability to reach a number of consumers, not only local but also in Latin America. The stock currently has a beta of 0.82, making it slightly less volatile than the market. Although the stock does not offer a dividend to investors, it does still have attractive numbers. Currently, the company’s earnings per share are $3.19, which give it a price to earnings ratio of 13.4. This is slightly less than the industry ratio of 16.5. Comparing the company to competitor Comcast Corporation (CMCSA) in regard to the price to earnings growth ratio, DIRECTV has an attractively low ratio of 0.53 which is more than half of Comcast’s ratio of 1.24. Looking at the company’s financial strength, DIRECTV has a quick ratio of 0.80 and a current ratio of 1.0. In speculating talks of acquisitions, it could be rumored that the company could purchase Siruis XM (SIRI). If this occurred, the company could experience growth in overall services and membership by offering bundled packages to subscribers.
DISH Network Corporation (DISH) – One of DIRECTV’s direct competitors is DISH Network and both have similar numbers at first glance. The company has a beta slightly higher than DIRECTV at 0.91, but is still considered less volatile than the market. To continue reading, click here.