Comcast Corporation (CMCSA): 1 Huge Value Where Investors Don’t Want to Look

That being said, the Universal part of NBCUniversal should be a growth driver in future quarters. While Disney cashed in on popular releases like Wreck-It Ralph and saw filmed entertainment revenue jump 13%, Comcast’s Universal Pictures reported a 2% increase. In the same quarter, Time Warner’s Warner Bros. reported filmed entertainment revenue decreased by 3.7%. As you can see, Universal didn’t do as well as Disney, but it didn’t do badly either. However, with hit movies out like Fast & Furious 6, and strong upcoming releases like Despicable Me 2, 2 Guns, and Riddick, the rest of the year looks strong.

Growth And Income Here, Too!
Just like Comcast Corporation (NASDAQ:CMCSA)’s cable business provides income, and NBCUniversal should provide growth, Comcast’s stock is a great growth and income play. In fact, depending on the day, Comcast or Time Warner might have the better yield of their peer group at about 1.9%.

However, where Comcast is the unquestioned leader is the company’s expected earnings growth rate. Analysts expect Comcast to grow earnings by 17.5% over the next few years. Compared to CBS at 13.62%, Disney at 12.5%, and Time Warner at 12.43%, Comcast is light years ahead. In addition, Comcast’s unique blend of divisions leads to the best margins of the group as well.

In the current quarter, Comcast Corporation (NASDAQ:CMCSA)’s operating margin was 29.85%. Considering that Disney and Time Warner both have margins of about 23%, and CBS’ operating margin was just 20%, you can see that Comcast is leading the way by this measure as well.

In the end, investors get a company with huge cash flow, a decent dividend, and class-leading growth. Comcast is retiring shares (2.51% in the last year), and pays just over 19% of its core free cash flow in dividends. With a total expected return of more than 19%, paying about 17 times forward earnings sounds like a very good deal. When you consider that Comcast’s peers are all growing slower, offer lesser dividends, and carry forward P/E ratios of at least 16, this looks like the best investment of the bunch.

Chad Henage has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Chad is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 1 Huge Value Where Investors Don’t Want to Look originally appeared on Fool.com and is written by Chad Henage.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.