Can These Hot Streaming Video Picks Fuel Your 2013 Portfolio?: Verizon Communications Inc. (VZ) and More

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The regulatory decision pertains to a dispute over Ethernet pricing, and is expected to cut revenue from 100 million pounds ($158 million) to 200 million pounds ($316 million) for two years, ending in March 2013 and 2014 respectively.

Valuation

We can look at the valuations of telecoms and players in the streaming video space and see how Verizon and BT Group fit in:

Ticker Company P/E P/S EPS Growth Next 5 Years
BCE BCE 13.09 1.72 1.8%
BT BT Group 10.32 1.17 3.9%
CTL CenturyLink 39.77 1.41 1.5%
T AT&T 29.42 1.56 5.9%
VZ Verizon 143.35 1.1 7.4%
CSTR Coinstar 11.02 0.7 17.6%
NFLX Netflix 613.62 2.76 18.8%
AMZN Amazon.com NA 1.92 41.6%

Data from FinViz.com. Streaming video stocks are listed at the bottom in italics

Analysts see more growth in streaming video than they do for telecom companies. BT Group and Coinstar appear the cheapest on a price-to-earnings basis in either industry. These two companies are also are cheap on a price-to-sales basis. Verizon and AT&T have analyst growth estimates that do not justify their price multiples, and Netflix is pricey even in view of its high anticipated growth.

Conclusion

Investors should consider BT Group and Coinstar as ways to play streaming video. BT Group in particular is an interesting combination of content provider and Telecom Company.

The article Can These Hot Streaming Video Picks Fuel Your 2013 Portfolio? originally appeared on Fool.com and is written by Bill Edson.

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