Contrasting NeuLion (NEUL) & Time Warner (TWX)

NeuLion (OTCMKTS: NEUL) and Time Warner (NYSE:TWX) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares NeuLion and Time Warner’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeuLion -32.77% -13.94% -9.43%
Time Warner 16.78% 18.96% 7.54%



Earnings and Valuation

This table compares NeuLion and Time Warner’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NeuLion $95.57 million 2.38 -$31.31 million ($0.04) -20.38
Time Warner $31.27 billion 2.41 $5.25 billion $6.42 15.06

Time Warner has higher revenue and earnings than NeuLion. NeuLion is trading at a lower price-to-earnings ratio than Time Warner, indicating that it is currently the more affordable of the two stocks.

Dividends

Time Warner pays an annual dividend of $1.61 per share and has a dividend yield of 1.7%. NeuLion does not pay a dividend. Time Warner pays out 25.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for NeuLion and Time Warner, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeuLion 0 0 0 0 N/A
Time Warner 0 13 9 0 2.41

Time Warner has a consensus price target of $104.56, suggesting a potential upside of 8.15%. Given Time Warner’s higher probable upside, analysts clearly believe Time Warner is more favorable than NeuLion.

Volatility & Risk

NeuLion has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, Time Warner has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

80.8% of Time Warner shares are owned by institutional investors. 73.2% of NeuLion shares are owned by company insiders. Comparatively, 0.2% of Time Warner shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Time Warner beats NeuLion on 12 of the 15 factors compared between the two stocks.

About NeuLion

NeuLion, Inc. provides enterprise digital video solutions in the United States and internationally. Its flagship solution, the NeuLion Digital Platform, is a proprietary cloud-based turnkey solution that enables the delivery and monetization of digital video content. The NeuLion Digital Platform provides content owners and rights holders with an end-to-end turnkey video distribution platform that enables them to ingest, encode, manage, deliver, monetize, and analyze the performance of their live and on-demand digital video content. It also provides NeuLion consumer electronics (CE) technologies, which allow CE manufacturers to provide a secure, high quality video experience with premium screen resolution, up to Ultra HD/4K, across virtually all content formats for a range of connected devices; and a library of high quality video compression-decompression programs or codecs under the MainConcept brand. It serves content owners and rights holders, such as professional and college sports, and broadcaster/operator customers; consumer electronics manufacturers; and video integrators comprising enterprise software providers. NeuLion, Inc. was incorporated in 2000 and is headquartered in Plainview, New York.

About Time Warner

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates through three segments: Turner, Home Box Office, and Warner Bros. The Turner segment creates and programs branded news, entertainment, sports, and kids multi-platform content for consumers. It operates approximately 175 channels in 200 countries and territories. The Turner segment's networks and related businesses and brands include TNT, TBS, Adult Swim, truTV, Turner Classic Movies, Turner Sports, Bleacher Report, Cartoon Network, Boomerang, CNN, HLN, and iStreamPlanet; and digital properties comprise tntdrama.com, TBS.com, adultswim.com, and cartoonnetwork.com, as well as NBA.com, the NBA League Pass property, NCAA.com, the NCAA March Madness Live app, and PGA.com. It also licenses its original programming, and its brands and characters for consumer products and other business ventures. The Home Box Office segment provides premium pay and basic tier television, and video content services comprising HBO and Cinemax; operates HBO NOW, a video content service; and sells original programming through physical and digital formats, as well as licenses original programming through international television networks and video content services. As of December 31, 2017, this segment had 54 million domestic subscribers. The Warner Bros. segment produces, distributes, and licenses television programming and feature films; distributes digital and physical home entertainment products; and produces and distributes games, as well as licenses consumer products and brands. Time Warner Inc. serves cable system operators, satellite service distributors, telephone companies, and virtual multichannel video programming distributors, as well as digital distributors. The company was formerly known as AOL Time Warner, Inc. and changed its name to Time Warner Inc. in 2003. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.

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