Charter Communications (NASDAQ:CHTR – Get Free Report) and Educational Development (NASDAQ:EDUC – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility & Risk
Charter Communications has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Educational Development has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Insider and Institutional Ownership
81.8% of Charter Communications shares are held by institutional investors. Comparatively, 19.6% of Educational Development shares are held by institutional investors. 1.1% of Charter Communications shares are held by insiders. Comparatively, 11.9% of Educational Development shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Charter Communications | $54.40 billion | 0.23 | $4.99 billion | $38.51 | 2.68 |
| Educational Development | $20.56 million | 0.54 | $2.33 million | $0.23 | 5.65 |
Charter Communications has higher revenue and earnings than Educational Development. Charter Communications is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Charter Communications and Educational Development, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Charter Communications | 7 | 10 | 5 | 0 | 1.91 |
| Educational Development | 0 | 1 | 0 | 0 | 2.00 |
Charter Communications presently has a consensus target price of $202.53, suggesting a potential upside of 95.91%. Given Charter Communications’ higher possible upside, equities research analysts plainly believe Charter Communications is more favorable than Educational Development.
Profitability
This table compares Charter Communications and Educational Development’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% |
| Educational Development | 9.75% | -18.23% | -12.73% |
Summary
Charter Communications beats Educational Development on 8 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 Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
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