Contrasting Axtel SAB (OTCMKTS:AXTLF) and Grupo Televisa (NYSE:TV)

Axtel SAB (OTCMKTS:AXTLF) and Grupo Televisa (NYSE:TV) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Axtel SAB and Grupo Televisa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axtel SAB	N/A	N/A	N/A
Grupo Televisa	-13.56%	-6.95%	-3.20%

Insider and Institutional Ownership

55.8% of Grupo Televisa shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Axtel SAB and Grupo Televisa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axtel SAB	0	1	0	0	2.00
Grupo Televisa	0	3	1	0	2.25

Grupo Televisa has a consensus price target of $4.70, suggesting a potential upside of 91.06%. Given Grupo Televisa’s stronger consensus rating and higher probable upside, analysts plainly believe Grupo Televisa is more favorable than Axtel SAB.

Valuation and Earnings

This table compares Axtel SAB and Grupo Televisa”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axtel SAB	N/A	N/A	N/A	N/A	N/A
Grupo Televisa	$3.42 billion	0.40	-$453.78 million	($0.75)	-3.28

Axtel SAB has higher earnings, but lower revenue than Grupo Televisa.

Volatility and Risk

Axtel SAB has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Summary

Grupo Televisa beats Axtel SAB on 5 of the 9 factors compared between the two stocks.

About Axtel SAB

AXTEL SAB de CV engages in the provision of public telecommunication services. It operates through the following segments: Business Operation and Government. The Business Operation segment offers communication services and value-added services, such as information, data and internet technologies for both local and international businesses. The Government segment provides services through the company’s network and infrastructure for the federal, state and municipal governments. The company was founded on July 22, 1994 and is headquartered in San Pedro Garza Garcia, Mexico.

About Grupo Televisa

Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.