Analyzing Altice USA (ATUS) and MSG Networks (MSGN)

Altice USA (NYSE: ATUS) and MSG Networks (NYSE:MSGN) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Altice USA and MSG Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altice USA 0 4 16 1 2.86
MSG Networks 1 3 4 0 2.38

Altice USA presently has a consensus target price of $28.69, suggesting a potential upside of 38.64%. MSG Networks has a consensus target price of $24.40, suggesting a potential upside of 21.70%. Given Altice USA’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Altice USA is more favorable than MSG Networks.

Earnings & Valuation

This table compares Altice USA and MSG Networks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altice USA $9.33 billion 1.64 $1.52 billion $0.02 1,034.50
MSG Networks $675.35 million 2.24 $167.34 million $2.22 9.03

Altice USA has higher revenue and earnings than MSG Networks. MSG Networks is trading at a lower price-to-earnings ratio than Altice USA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Altice USA and MSG Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altice USA 15.69% -6.78% -0.82%
MSG Networks 41.18% -21.60% 21.29%

Institutional and Insider Ownership

17.2% of Altice USA shares are owned by institutional investors. Comparatively, 82.0% of MSG Networks shares are owned by institutional investors. 2.0% of Altice USA shares are owned by insiders. Comparatively, 18.4% of MSG Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Altice USA beats MSG Networks on 8 of the 14 factors compared between the two stocks.

About Altice USA

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States. The company operates in two segments, Cablevision and Cequel. It delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content, and advertising services to approximately 4.9 million residential and business customers. The company also offers wireless routers and Internet security software; and pay television services, which include delivery of broadcast stations and cable networks, and advanced digital pay television services, such as video-on-demand, high-definition channels, digital video recorder, and pay-per-view. In addition, it provides Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony, managed Wi-Fi, managed desktop and server backup services; managed collaboration services, including audio and Web conferencing; managed services, including business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; data-driven television, digital, and other multi-platform advertising services; and data-driven and audience-based advertising solutions. Further, the company operates local news channels, as well as traffic and weather channels; News12.com, a destination for local news on the Web; and News 12 To Go, a mobile app for phones and tablets. Altice USA, Inc. is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Altice N.V.

About MSG Networks

MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States. The company owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. It also operates MSG GO that provides live streaming and video on demand, as well as a Website and social media platforms for its brands. The company was formerly known as The Madison Square Garden Company and changed its name to MSG Networks Inc. in October 2015. The company was founded in 1969 and is based in New York, New York.

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